In the Year 1945, Government appointed the Examiner of Local Fund Accounts as Chief Auditor, State Trading Schemes and entrusted with the internal department audit of state-run trading schemes administered by Government.
Accounts substantially increased with the additional function as Chief Auditor State Trading Schemes. It was therefore in order to segregate the functions of the Chief Auditor, State Trading Schemes from those of the Examiner of Local Fund Accounts, a separate department known as State Trading Schemes under a separate Head of the Department, headed by the Chief Auditor State Trading Scheme vide G.O.M.S.No.449 Finance, dated 03.05.1969 was formed.
Later, the Public Accounts Committee endorsed the suggestion of Comptroller and Auditor General of India for setting up a strong and fairly independent internal audit under the Finance Department.
In this context, the Government in order to ensure an independent Internal Audit in Government Departments, to monitor the effectiveness of system controls and to improve the quality of Internal Audit re-aligned the functions of Department of Local Fund Audit and Chief Auditor, State Trading Schemes.
Subsequently in the G.O.M.S.No.598, Fin (LF) dept; dated: 03.08.1992, the Chief Auditor State Trading Schemes was redesigned as Chief Internal Auditor and Chief Auditor of Statutory Boards, who was entrusted with the internal Audit functions of all Government Departments and the department was renamed as Internal Audit and Statutory Boards Audit department vide G.O.M.S.No.848 Fin. (LF) department, dated 09.11.1995.
As per the announcement made by the Hon'ble Deputy Chief Minister on the floor of assembly during the discussion on demand for grants 2019 - 2020, as the duties and responsibilities of the department has been extended/realigned to many important statutory and non-statutory boards/Institutions, Government departments and Government aided Institutions, the name of the “Internal Audit and Statutory BoardsAudit Department” has been renamed as “State Government Audit Department” vide G.O. M.S. No. 264; Fin (LF) dept; date 16.08.2019.
