Internal Audit Checklist for Stronger Risk Prevention

Strong internal audit programmes are a cornerstone of resilient organisations across the Kingdom of Saudi Arabia. When designed and executed correctly, internal audit not only detects problems but prevents them by strengthening controls, clarifying accountability and guiding management to make risk aware decisions. This checklist is written for audit leaders, chief audit executives, compliance officers and finance teams working in KSA and is grounded in the latest 2025 evidence and region specific market context. It also references how internal audit consultancy services can complement in house capability while reflecting the consulting landscape in Riyadh.

Why a checklist matters now

Regulation and stakeholder expectations evolved rapidly through 2024 and 2025. New global internal audit standards came into effect in January 2025 and require internal audit functions to demonstrate modernised practice across governance reporting, quality assurance and risk assessment. Organisations that do not recalibrate audit design face compliance risk and missed opportunities to reduce friction in control environments. Recent regional surveys show internal audit is increasingly being asked to provide assurance on cyber resilience, third party risk and data governance.

Quick at a glance 2025 facts for KSA leaders

1. The Saudi consulting market remains the largest in the Gulf and consulting demand has driven growth in advisory spend. The regional consulting market data indicates strong expansion in prior years and a robust market for advisory partners.
2. Market research shows the Saudi management consulting services market size is estimated at around USD 3.98 billion in 2025. That growth supports a competitive bench of firms that can provide internal audit consultancy services and specialist assurance resources.
3. Digital threats and fraud are material. Industry trackers and fraud reports flagged a sharp rise in reported fraud and cyber related incidents in 2024 and 2025 with substantial financial losses recorded in the financial sector and an active response to invest in detection tools and controls. Strengthening audit coverage of cyber and fraud controls is therefore a priority.

Core checklist for stronger risk prevention

Use this checklist as a practical guide to ensure internal audit activity materially reduces residual risk and protects stakeholders.

1. Governance and charter alignment

1. Confirm the internal audit charter is updated to reflect the 2025 Standards and local regulatory expectations.
2. Ensure clear reporting lines to the audit committee and access to the board for escalations.
3. Validate that roles and responsibilities across first line, second line and internal audit are documented and understood.

2. Risk assessment and planning

1. Maintain an enterprise wide risk assessment that is refreshed at least annually and whenever material change occurs.
2. Use data driven risk indicators and incorporate intelligence from cyber, fraud, legal and regulatory teams.
3. Prioritise audits by residual risk and potential financial impact so scarce audit resources deliver measurable risk reduction.

3. Control design and operating effectiveness

1. Test control design in high risk processes such as procurement, payments, payroll and third party onboarding.
2. Confirm control owners are assigned and that control owners receive timely evidence requests and remediation support.
3. Include walkthrough testing and substantive sampling in the audit programme to validate operating effectiveness.

4. Technology and data analytics

1. Adopt continuous auditing where feasible. Use analytics to monitor transactions, identify anomalies and track exception trends.
2. Require read only access to key system logs for timely forensic review and to support fraud investigations.
3. Document data lineage and ensure audit teams can reliably extract and reconcile source data.

5. Cyber and information risk assurance

1. Coordinate with the chief information security officer to align audit coverage with the organisation cyber risk profile.
2. Validate asset inventories, patch management, access provisioning and privileged access controls.
3. Include simulated scenario reviews of incident response readiness and business continuity linkages.

6. Third party and vendor controls

1. Ensure vendor risk assessments exist for critical suppliers and service providers.
2. Confirm contractual right to audit clauses are in place for material third parties and that evidence is periodically reviewed.
3. Map critical outsourced processes and test controls that mitigate concentration and single point of failure risk.

7. Fraud risk and anti corruption checks

1. Include targeted fraud risk audits where control gaps or unusual trends are identified.
2. Test segregation of duties across payment and approval workflows and validate whistleblower response timeliness.
3. Track remediation closure to confirm root causes are addressed rather than control workarounds.

8. Quality assurance and continuous improvement

1. Establish a quality assurance programme that includes internal reviews and periodic external assessment in line with the Standards.
2. Use post audit reviews and client feedback to improve audit methodology, time budgeting and stakeholder engagement.
3. Build a training plan to close capability gaps in areas such as data analytics, cyber assurance and regulatory compliance.

Practical metrics to track success

Define measurable metrics and report them to the audit committee consistently.

1. Percentage of high risk recommendations implemented within agreed time.
2. Number of significant control failures detected after audit compared to prior year.
3. Time from issue identification to remediation closure measured in days.
4. Coverage of top enterprise risks by internal audit as a percentage of plan.
5. Percentage of audits that used data analytics or continuous monitoring techniques.

These metrics help convert audit activity into tangible improvement in risk posture.

Resourcing options for KSA organisations

Not every organisation needs to build every capability in house. Many entities augment internal teams through partnerships and targeted engagements. Internal audit consultancy services can fill gaps in specialist assurance, provide rapid field teams for major reviews and support adoption of new standards. When engaging external partners select firms with local regulatory knowledge and proven track records in the sector. Consulting firms based in Riyadh can bring both regional context and access to local talent pools.

Common pitfalls to avoid

1. Treating audit as only a compliance exercise rather than a forward looking assurance partner.
2. Failing to update audit coverage when business models change quickly.
3. Relying on outdated sampling approaches when continuous monitoring is available.
4. Underinvesting in audit data access which slows investigations and weakens assurance.

Building board level confidence

Audit committees and senior executives value clear, concise reporting that links audit findings to financial impact and three year trend data. Present heat maps, trend charts and remediation tracking that map directly to enterprise risk priorities. Demonstrating proactive prevention through timely assurance of high risk areas breeds stakeholder trust.

Local market context for KSA buyers

Saudi Arabia continues to be the largest consulting market in the Gulf and advisory budgets are substantial even as clients ask for greater value for money. The consulting market environment means there is a deep supply of advisory capability to draw from when needed. At the same time regulators and sovereign investors have increased scrutiny of advisory contracts so selection criteria now emphasise demonstrable outcomes, local footprint and proven sector expertise. 

Second last step checklist summary

1. Update charter and align with the 2025 Standards.
2. Reprioritise the audit plan to focus on cyber, fraud and third party risks.
3. Leverage data analytics and continuous monitoring for early detection.
4. Consider targeted engagements with consulting companies in Riyadh where specialist capability is required.

Call to action

If your organisation in KSA is strengthening its internal audit programme and needs practical implementation support, reach out to insight advisory for a tailored assessment. We help align audit coverage to the 2025 Standards, implement analytics led assurance and deploy rapid remediation frameworks that reduce risk exposure and strengthen governance.