Internal Audit Controls KSA Firms Need in 2026

Saudi Arabian firms entering 2026 face a governance landscape that demands stronger assurance, clearer accountability, and smarter controls. Internal audit functions are no longer a back office activity but a strategic line of defense that supports growth and investor confidence. For many organisations that means investing in internal audit consulting services to upgrade controls, align with updated global standards, and demonstrate compliance with local regulators. Advisory Companies in Saudi Arabia are increasingly called on to help boards translate regulation into practical, risk based audit programs.

Why internal audit matters now

The Kingdom recorded solid macroeconomic momentum in 2025 with multiple agencies revising growth forecasts as projects under Vision 2030 gathered pace. Official statistics and multilateral institutions report annual growth in the range of mid single digits for 2025 and improved fiscal planning for 2026, creating both opportunities and complexity for companies that must manage rapid expansion. Robust internal audit controls protect value by ensuring the accuracy of financial reporting, safeguarding assets, and verifying the effectiveness of new business processes. Many firms are engaging internal audit consulting services to implement risk based audit plans that focus on high risk exposures arising from large infrastructure programs and evolving revenue streams.

Core control areas for 2026

KSA firms should prioritise controls in five interlocking domains. Each domain requires methodology and documentation that internal audit teams and external advisers can test and report on.

1. Governance and board reporting
   Boards must receive clear, timely assurance about internal controls, risk management, and internal audit activity. Good practice includes a chartered internal audit function that reports administratively to the chief executive and functionally to the audit committee. Internal audit consulting services can support the design of audit charters and committee escalation protocols to meet Capital Market Authority expectations for listed entities.
2. Financial control and reporting accuracy
   Controls over revenue recognition, accounts payable, payroll, and treasury remain foundational. Given capital intensive spending in 2025, close attention to project accounting and contract management is essential. Audit procedures should include walkthroughs, transaction sampling, and automated exception reports where enterprise resource planning systems are in use.
3. Risk management and internal control frameworks
   Firms should map top risks to control activities and assurance procedures. The updated guidance from international bodies in 2025 emphasises strategic alignment of internal audit to enterprise risk so that assurance is forward looking. This requires modern risk registers, scenario testing, and continuous monitoring tools.
4. Compliance and regulatory reporting
   Compliance with CMA corporate governance regulations and other sector specific rules must be validated annually. Internal audit should test adherence to disclosure obligations, related party transaction policies, and internal control over financial reporting for listed companies. Advisory Companies in Saudi Arabia are well placed to run maturity assessments and remediation roadmaps.
5. Technology and cyber controls
   With digital transformation accelerating, firms need controls for identity management, change management, access provisioning, and data integrity. Internal audit programs must include IT general controls testing, penetration test follow up, and review of third party vendor risk management.

Practical steps to strengthen controls

Firms can implement a pragmatic program across three phases: assess, design, and embed.

Assess
Use a rapid maturity assessment to identify control gaps across finance, operations, and IT. Evidence based scoring linked to residual risk levels gives leadership a prioritised list of findings that can be actioned. Many organisations use external assurance to add independence to the assessment.

Design
Design standardised policies, control matrices, and audit scripts mapped to the organisation chart. Where systems exist, embed automated controls and exception reporting to reduce manual testing. Internal audit consulting services often help tailor the control library to local regulatory expectations and international standards.

Embed
Create a remediation tracker with owners, deadlines, and verification steps. Build continuous monitoring dashboards that report control failures in near real time and feed escalations to the audit committee. Training and change management ensure that control owners understand why controls exist and how they will be tested.

Staffing and capability considerations

Internal audit teams require a mix of financial, operational, and technology skills. For 2026, KSA firms should consider:

• Hiring professionals with experience in project accounting and contract management to address large projects arising from Vision 2030 initiatives.
• Upskilling audit staff in data analytics and automated testing tools so sampling becomes exception driven rather than paperwork intensive.
• Using a blend of permanent staff and external experts to obtain both institutional knowledge and specialist skills on demand. External advisers reduce time to implement complex IT control testing and can accelerate adoption of best practice.

Evidence from 2025 that shapes 2026 priorities

Several credible sources in 2025 signalled trends companies must heed. The OECD country note on corporate governance for Saudi Arabia summarises reforms and benchmarking data relevant to boards and audit committees. The International Monetary Fund and national statistics agencies reported stronger than expected growth in 2025 which implies expanded transaction volumes and increased complexity for controls. Updated internal audit standards issued in 2025 emphasise strategic alignment of assurance and require internal audit functions to demonstrate value beyond compliance. These indicators together point to the need for strengthened internal audit coverage across finance, compliance, and technology.

Measuring audit effectiveness

Audit effectiveness is measured by metrics that show improved control reliability and reduced loss events. Useful indicators include:

• Percentage of high priority findings remediated within agreed timeframes.
• Reduction in number and value of control exceptions over time.
• Time to close audit observations and percentage validated by follow up testing.
• Stakeholder satisfaction scores from the audit committee and senior management.

These metrics should be reported quarterly to executive leadership and the audit committee with trend analysis.

Working with external advisers

Partnering with external advisers and Advisory Companies in Saudi Arabia helps firms adopt best practice quickly and scale assurance work without long hiring cycles. Advisers can provide specialist skills for IT control testing, forensics, and regulatory compliance reviews. When selecting an adviser, firms should evaluate methodology, local experience, and ability to transfer skills to internal teams.

Governance checklist for boards in 2026

Boards should ensure the following are in place and reviewed annually:

• A documented internal audit charter and approved plan aligned to strategic risks.
• Clear reporting lines between the audit committee and the head of internal audit.
• A formal quality assurance and improvement program for internal audit.
• Evidence of coordination between internal audit, external audit, and compliance functions.

Second last paragraph with targeted guidance

For firms operating in the Kingdom, completing a gap analysis against CMA regulations and the updated internal audit standards from 2025 is a practical first step. Use data driven audits for areas where transaction volumes have risen sharply. Advisory Companies in Saudi Arabia can provide benchmarking data and a remediation playbook that shows which controls to implement first and how to measure progress.

Call to action

If your firm needs help implementing a robust internal control program, engage an experienced partner. Insight advisory can run a tailored internal audit health check, deliver a pragmatic remediation roadmap, and help build internal capability so your organisation is inspection ready and growth ready. Advisory Companies in Saudi Arabia are available to support board level assurance and technical delivery. Contact insight advisory for a focused diagnostic and next steps.