Internal audit in Saudi Arabia is changing faster than many business leaders realize. Too many decision makers still treat internal audit as a tick the box exercise or outsource it only when required. The reality is internal audit can be a strategic partner that reduces risk and unlocks performance when treated with the right approach. If you are evaluating a consultant internal audit to modernize governance and controls you need to separate myths from facts now. Advisory Companies in Saudi Arabia are already advising boards to upgrade internal audit capabilities to meet new standards and stakeholder expectations.
Myth one: Internal audit is only about compliance
Many leaders think internal audit exists only to check regulatory boxes. That view underuses the function. Today internal audit provides assurance across strategy execution controls and emerging threats such as cyber security and third party risk. Chief audit executives globally list cyber security and talent management among top near term risks. Treating auditors as compliance police rather than strategic partners leaves your company blind to these systemic threats. Independent surveys for the Middle East show cyber security repeatedly ranks as a top concern for internal audit teams. If you are hiring a consultant internal audit to improve coverage insist on a program that links audit work to strategic risk and measurable business outcomes.
Myth two: Only listed companies need strong internal audit
Some private and family owned firms assume internal audit is for listed companies only. That is no longer true. Saudi regulators have tightened governance rules and now expect robust internal audit arrangements in many enterprises. A 2025 corporate governance factbook noted that regulatory changes require listed entities to establish internal audit units and adopt formal audit planning processes. Even where regulation does not force a function the benefits are clear. A well run internal audit reduces fraud losses improves control maturity and provides independent insight that boards rely on when markets move. Engaging a consultant internal audit can be an efficient way to scale expertise quickly while you build internal capability.
Myth three: Technology will replace auditors
There is a myth that automation and artificial intelligence will replace the need for human auditors. Technology is a force multiplier not a substitute. Tools accelerate data analysis and continuous monitoring but they increase expectations too. Regulators and professional bodies now expect internal audits to show how data analytics and automated tools are used and governed. Auditors need business judgement and professional scepticism to interpret results and to assess controls around AI systems. If you plan to adopt new tools ask any internal audit consultant how they will integrate data analytics with risk based audit planning and how they will measure the impact of those tools on assurance quality.
Myth four: Internal audit is expensive and gives low ROI
Many finance leaders view internal audit as a cost center. This mistaken view comes from audit programs that focus on routine checklist testing with no clear linkage to outcomes. Modern internal audit builds a risk based plan tied to the organisation’s strategic objectives and quantifies value through reduced control failures, faster remediation and better process efficiency. For example regulatory and governance reforms in 2024 and 2025 have created tangible compliance costs for firms that delay internal audit upgrades. Investing modestly to close critical gaps can avoid much larger penalties or remediation costs later. When assessing cost, think of internal audit as insurance and strategic insight combined.
Myth five: Internal audit and external audit are the same
Some executives conflate internal audit with external audit. They are distinct functions with different roles. External auditors give an opinion on financial statements. Internal audit provides ongoing independent assurance across risk controls governance and operational effectiveness. Effective coordination between them reduces duplication and increases coverage. Clear role definition helps your board extract maximum value from both functions without waste. Advisory Companies in Saudi Arabia commonly recommend joint planning sessions between internal audit and external auditors to align scopes and avoid assertion gaps.
Myth six: You cannot measure internal audit performance
A common complaint is that internal audit work is intangible. That is avoidable. Modern audit teams set meaningful key performance indicators such as percentage of high priority findings remediated within agreed time frames, cost savings identified through audits time to issue closure and stakeholder satisfaction scores. Equally important are outcome metrics such as reductions in incidents of fraud or control failures in high risk areas. Use data to tell the story and ensure every audit links to a measurable business outcome. This is the approach recommended in the new global internal audit standards that took effect January 2025.
Myth seven: Outsourcing internal audit means you lose control
Outsourcing part or all of internal audit is often seen as surrendering control. In practice professional outsourced models provide scalable expertise and clear governance safeguards. Hybrid models where an internal core team manages strategy and outsourced specialists provide technical or sector specific testing are common and effective. The market has adapted quickly and many firms now offer tailored services that keep the chief audit executive and the audit committee firmly in charge of priorities and methodology. When selecting a partner demand transparency on methodology evidence sampling and staff continuity. Advisory Companies in Saudi Arabia can help design a hybrid model that preserves governance while closing capability gaps.
Quick facts you should know in 2025
• The Institute of Internal Auditors Risk in Focus regional survey for the Middle East included 179 respondents and ranked cyber security top among current risks for audit teams.
• Global and regional professional bodies updated internal audit standards effective January 2025 which raise expectations on governance data analytics and independence. Saudi organisations are already assessing readiness against these new standards.
• Recent corporate governance reporting noted significant increases in sustainability disclosure among listed Saudi issuers with 94 companies reporting sustainability practices in 2024. That trend increases the need for assurance work on sustainability reporting.
• Leading risk surveys for 2025 highlight third party risk and business continuity alongside cyber security as top near term concerns for internal audit functions. Firms that ignore these areas face higher operational exposure.
Practical steps for KSA boards and leaders
- Reframe internal audit as strategic assurance not a checklist function. Ensure audit plans map directly to top enterprise risks and strategic priorities.
- Update governance to reflect the new standards. Confirm that your internal audit charter reporting lines and professional development plans meet the 2025 expectations.
- Adopt a blended sourcing approach. Use external specialists for technical audits and build internal capability for continuous oversight and relationship management.
- Invest in data and analytics capability and set clear metrics to evidence audit impact. Track remediation rates and changes in incident rates over time.
- Ensure independent oversight. The audit committee should review internal audit quality assessments and sign off on any major outsourcing arrangements.
Case note for KSA companies
Companies that continue to treat internal audit as a late stage compliance chore risk regulatory friction and missed strategic insight. The evidence from 2024 and 2025 policy and survey work is clear. Firms that act now to modernize internal audit will gain faster remediation cycles, stronger controls and clearer assurance on new reporting areas such as sustainability and technology risk. Advisory Companies in Saudi Arabia are positioned to support boards and chief audit executives through this transition with advisory services tailored to local regulation and Vision 2030 objectives.
Conclusion and call to action
If your organisation still believes the old myths your internal controls and strategic resilience are at risk. Start with a short readiness assessment that maps your current internal audit maturity against the 2025 standard changes and your top enterprise risks. Engage experienced partners to build a measurable program that delivers immediate assurance and long term strategic value.
Contact us for a rapid readiness review and implementation roadmap. insight advisory can help you design a practical plan that aligns internal audit to strategy and regulatory expectations. Advisory Companies in Saudi Arabia familiar with local rules and global standards will ensure a smooth transition and measurable results.
Finance Advisory 