The auditing would not only enable financial discipline but would also help in fixing the responsibilities, a spokesman said.
A proposal to initiate the internal auditing process was approved by the state cabinet in 2003 but was never executed for some "unexplained reasons", an official told IANS.
A detailed study had been undertaken by PricewaterhouseCoopers under 'modernization and strengthening of internal audit' project a decade back. The state cabinet approved it but it was not implemented.
The issue was brought to the notice of Akhilesh Yadav by the finance department and the files were opened again.
After the approval of the chief minister, it will now being implemented, the spokesman said. He said the policy making process, norms of internal audit and its implementation will be the responsibility of the state internal auditor.
The state internal auditor will also be responsible for the preparation of manuals, policies and ensuring with the help of the directorate of internal audit that the audit is implemented across all the departments.
It will review the auditing system, its organisational structure, working capabilities and training needs. The internal auditor will review the work of the chief audit officer or audit controller.