New Era for Public Sector Internal Audit

Having spent a significant portion of my career in government auditing, I frequently champion the value that government auditors can deliver as “guardians of public trust” around the world. When I see government auditors who are victims of retaliation, I speak out. But when I see legislative reforms or other developments that signal stronger and more independent government oversight, I also speak out. Recent oversight reform legislation in Chile caught my attention, and I want to highlight the development for the benefit of all.

Chile has entered a new chapter in public governance. With the enactment of Law No. 21,769, the country has established the Servicio de Auditoría Interna de Gobierno (SAIG)—a modern, independent body that replaces the Consejo de Auditoría Interna General de Gobierno (CAIGG) and ushers in a new era of public accountability and risk-based oversight.

This reform is more than administrative. It signals a decisive move toward integrity, efficiency, and trust in government.

A Long-Awaited Transformation

For decades, global organizations like the OECD, World Bank, and Inter-American Development Bank have called on Chile to strengthen its public sector internal audit system. The SAIG finally answers that call.

Unlike its predecessor, the SAIG is a decentralized public entity with its own legal personality and assets. It reports directly to the President of the Republic and provides professional advice to ministers and senior officials on governance, internal control, and risk management.

This change institutionalizes internal audit as a cornerstone of good governance—not as a reactive control, but as a proactive function that safeguards and creates public value.

Building a Professionalized Internal Audit Function

The SAIG’s mission reaches beyond oversight. It will:

• Lead and coordinate a Public Sector Internal Audit Network of more than 1,000 auditors across ministries and agencies.
• Set technical standards consistent with the IIA’s Global Internal Audit Standards.
• Oversee audit quality and strengthen professional competencies.
• Develop an Annual Internal Audit Plan for each institution, guided by a General Audit Policy approved by the President.

This professionalization effort brings Chile in line with global best practices. Internal audit across government will now operate within a unified framework—consistent, risk-based, and aligned with international standards.

A Strategic Response to Modern Risks

The creation of the SAIG comes at a time when the global risk landscape is shifting rapidly. Cybersecurity, AI disruption, geopolitical instability, and macroeconomic uncertainty dominate the agenda for public and private sector leaders alike.

According to the IIA’s Risk in Focus 2026 report, internal audit must evolve to anticipate and navigate these high-velocity risks. Chile’s move positions its public sector to do just that—by embedding foresight, advisory capacity, and agility into the audit function.

The SAIG will serve not only as a watchdog, but as a strategic advisor, helping public institutions anticipate threats, improve controls, and strengthen governance before risks turn into crises.

A State Policy That Transcends Politics

Chile’s reform is notable for another reason: it’s designed to outlast any single administration.

The SAIG embodies a State policy, not a government policy. It reflects a national commitment to transparency, ethical governance, and public trust. By institutionalizing internal audit as a State function, Chile is ensuring continuity, independence, and resilience in its oversight systems—regardless of political changes.

This approach aligns Chile with the world’s most advanced governance models, where public sector internal audit is not a compliance formality, but a vital mechanism for value creation.

The Road Ahead: From Oversight to Insight

As Chile implements the SAIG, the focus must now shift from structure to impact. Success will depend on how effectively the new organization:

• Integrates risk management and audit planning.
• Leverages technology and data analytics.
• Builds capacity across the audit network.
• Strengthens relationships with decision-makers.

A Model for the Region

Chile’s new internal audit framework sets a powerful precedent for Latin America and beyond. It demonstrates that reforming public oversight isn’t just possible—it’s essential for nations striving for transparency, accountability, and effective governance.

The SAIG represents a forward-looking model that other governments can learn from: one built on independence, professionalism, and public trust.

With this reform, Chile is not only strengthening its institutions. It is strengthening democracy itself.