The Division of State Audit conducts financial and compliance and performance audits, conducts investigations, and performs special studies to provide the General Assembly, the Governor, and the citizens of Tennessee with objective information about the state's financial condition and the performance of the state's many agencies and programs. This division thus aids the legislature in ensuring that state government is accountable to the citizens of Tennessee. In fulfilling this audit function, the division issued 83 reports during the year ended June 30, 2008; an additional 121 audits and special investigations were in progress at June 30, 2008.

This division includes six sections: financial and compliance, Medicaid/TennCare, performance, special investigations, information systems, and waste and abuse.

In addition to auditing, the division reviews and comments on exposure drafts of pronouncements of professional organizations and conducts technical research and training. The division also assists the Comptroller in the formulation of state policy and regulations, either directly by consulting with representatives of state agencies or indirectly by submitting comments about proposed policies and procedures.