Senate committee substitute to the 1st edition makes the following changes.

Adds the following to GS 143-746, which governs required internal auditing of State agencies. Charges each agency head with the responsibility of ensuring that agency's internal audit unit meets the required key indicators established by the Council of Internal Auditing (Council). Additionally, requires each agency head to certify to the Council that the audit plan was developed and the audit reports were conducted and reported in accordance with the required internal auditing standards established by the Council pursuant to the Council's new duty under GS 143-747(c)(3a), as enacted.

Amends the membership of the Council of Internal Auditing, under GS 143-747, as follows. Allows the Attorney General to appoint a designee to serve in his place. Requires the members appointed by the President Pro Tempore and the Speaker of the House to be certified public accountants licensed in this State with internal auditing experience and in good standing with the North Carolina State Board of Certified Public Accountant Examiners. Now requires the Executive Director to serve at the will of the Council and be exempt from the North Carolina Human Resources Act. Requires the Council to hire two Administrative Specialists as selected by a majority of the Council, who will perform duties delegated by the Executive Director and will also serve at the will of the Council and be exempt from the provisions of the North Carolina Human Resources Act. Now requires the Council to establish required minimum key performance indicators and (was, of) criteria that comply with the Professional Practice of Internal Auditing issued by the Institute for Internal Auditors. Makes conforming changes to GS 143-746 to require each agency head to be responsible for ensuring that agency's internal audit unit meets the required key indicators and criteria established by the Council. 

Appropriates $351,857 in recurring funds for the 2021-23 biennium from the General Fund to the Office of State Budget and Management to establish an executive director position and two administrative specialist positions, with specified amounts to be used for the Executive Director and for the administrative specialists. 

Makes conforming changes to the act's long title.