Internal Audit Best Practices for Multinationals in KSA

Internal audit consulting services have become essential for multinational corporations operating in the Kingdom of Saudi Arabia. In an era defined by rapid economic transformation under Vision 2030, organizations are seeking assurance functions that go beyond traditional compliance checks toward strategic business enablement. An Insights company perspective reveals that internal audit now plays a pivotal role in risk management, technological transformation, corporate transparency, and global governance alignment.

In 2025, multinational firms face unprecedented pressure to adapt internal audit functions that can confidently support cross border operations, complex regulatory environments, and diversified enterprise risk. Saudi Arabia’s corporate governance reforms have expanded expectations of internal audit as a contributor to performance enhancement, as well as fraud detection and prevention. Recognizing the value from both internal teams and third party specialists such as internal audit consulting services improves audit impact and strengthens organizational resilience.

This article outlines the best practices multinationals in KSA should adopt to advance internal audit effectiveness, supported by up to date metrics and strategic recommendations from an Insights company viewpoint.

Why Best Practices in Internal Audit Matter for Multinationals in KSA

Internal audit is no longer a back office checkbox function. It has become a dynamic strategic partner that supports boards and executive leadership with independent assurance and advisory insights. According to recent 2025 audit pulse data, around ninety percent of Chief Audit Executives now participate in strategic leadership roles, often including enterprise risk oversight beyond pure control testing. With Saudi Arabia transitioning toward a diversified economy, non oil sectors now represent fifty percent of national gross domestic product, reinforcing the need for sophisticated internal audit approaches.

For multinational firms, best practices are even more critical. Operating across multiple regulatory jurisdictions exposes these firms to elevated compliance complexity, differing financial reporting frameworks, and international risk profiles. Effective internal audit helps ensure multinational operations in the Kingdom meet global expectations for governance, while creating value by improving internal processes, supporting digital transformation, and elevating board level confidence.

In this context, many organizations supplement their internal teams with internal audit consulting services to build capability, accelerate transformation, or access specific technical skills such as cyber risk and AI enabled auditing.

Establishing a Strategic Internal Audit Framework

Align Audit Objectives With Enterprise Strategy

The core of internal audit best practice for multinationals begins with alignment to corporate strategy. Internal audit functions must clearly define their mission, scope, and value proposition in ways that directly support enterprise goals such as operational excellence, regulatory compliance, and digital innovation.

A recommended approach is risk based planning. Multinationals in KSA should conduct enterprise wide risk assessments that identify strategic, financial, operational, and compliance risks using quantitative scoring tools. In 2025 quantitative data shows that internal audit functions tied closely to enterprise goals deliver more timely and actionable insights than those focused only on compliance tasks.

Empower Audit Committees and Leadership

Audit committees should actively engage with internal audit teams to shape long term risk priorities and review audit plans. Reporting structures that preserve independence and facilitate direct communication with the audit committee enable auditors to flag emerging issues early. Regular reporting cycles, performance indicators, and forward looking insights support governance integrity.

Engaging external specialists through internal audit consulting services for complex multinational challenges such as cross border tax compliance or global supply chain risk reviews can strengthen credibility and supplement internal capabilities.

Integrating Advanced Technology and Data Analytics

Digital Tools for Continuous Auditing

Digital transformation is among the most transformational trends shaping internal audit in 2025. Audit functions are increasingly using automated analytics, robotic process automation, and artificial intelligence to enhance risk identification and control testing. The 2025 global internal audit landscape indicates that forty one percent of audit leaders now report use of generative AI tools in select audit tasks, though advanced adoption remains a strategic priority for growth.

For multinationals in KSA, digital capabilities enable continuous auditing through real time monitoring of key controls, predictive analytics for financial irregularities, and automated compliance checks on transactions across multiple business units. Internal audit teams that leverage data analytical tools can reduce manual testing time and improve fraud detection efficiency.

Cybersecurity and Digital Risk

Cybersecurity risks are critical, especially for multinationals handling customer data and global connected platforms. Approximately sixty five percent of companies in the region cite challenges balancing cybersecurity operations with compliance efforts.Internal audit should assess the strength of digital governance frameworks, perform independent cyber risk assessments, and recommend improvements to security protocols.

At times, internal audit functions may lack specialized IT audit expertise. In such instances, collaboration with external advisors through internal audit consulting services ensures that technical risk assessments are thorough, credible, and aligned with international best practices.

Building High Performing Internal Audit Teams

Talent Development and Skill Diversification

Best in class internal audit teams are not built overnight. They require continuous investment in capability development. As the role of internal audit expands in 2025, there is a growing demand for professionals with expertise in areas such as data analytics, AI enabled auditing, ESG assurance, and complex financial instruments.

Multinationals in KSA should establish ongoing training programs, certification support, and cross functional rotations to keep internal auditors abreast of emerging methodologies. Initiatives such as internal audit academies, mentorship programs, and participation in audit forums strengthen both skills and professional networks.

Leveraging External Expertise

Despite strong internal teams, multinationals often encounter specialized audit requirements that exceed internal capacity. Leveraging internal audit consulting services for targeted assignments such as enterprise risk management frameworks, cross border regulatory compliance, or advanced analytics implementations can accelerate capability building and transfer knowledge to internal staff.

Engagements with external advisors should focus on capability building rather than mere task execution. Shared deliverables, joint workshops, and co developed audit tools help internal teams adopt best practices sustainably.

Embracing Global Standards and Local Regulatory Requirements

Corporate Governance and Regulatory Compliance

Saudi regulatory bodies such as the Capital Market Authority have strengthened requirements for governance, oversight, and internal audit functions. In the latest governance update reported for 2024 and continuing into 2025, listed companies are required to establish internal audit units, adopt audit plans, and provide periodic reports. Approximately ninety four percent of top issuers now disclose sustainability practices in audit disclosures.

Multinationals must navigate compliance with local Saudi regulations while aligning with international audit standards such as those issued by global audit institutes. Harmonizing these requirements ensures internal audit adds value to both domestic governance expectations and international investor scrutiny.

Strategic Reporting and Board Engagement

Best practices include tailored reporting models for different audiences. Boards and audit committees require concise executive summaries with quantified residual risk indicators, while operational leaders benefit from detailed controls reviews with clear remediation steps and timelines. Metrics such as reduction in control exceptions year over year or percentage of audit recommendations implemented on time help demonstrate audit value.

Effective reporting strengthens trust and supports strategic decision making for multinationals with diverse stakeholder expectations.

Measuring and Communicating Audit Value

Quantifying Impact

A mature internal audit function must quantify its impact not just through compliance checklists but through measurable business outcomes. For example, improved operational efficiency, reduced control failures, and enhanced risk response times are objective measures that executives can understand and act upon.

Global data for the auditing services market places internal audit services at nearly seventy four billion United States dollars in 2025, reflecting strong international demand for audit expertise and assurance.

Demonstrating Strategic Insights

Internal audit should be positioned as a source of forward looking insights that guide leadership choices. Whether advising on risk mitigation strategies or validating the effectiveness of strategic initiatives, audit functions that deliver value beyond compliance build trust and organizational credibility.

An Insights company perspective emphasizes the importance of continuous learning, feedback loops with management, and incorporation of risk intelligence into strategic planning cycles.

Internal audit best practices for multinationals in the Kingdom of Saudi Arabia in 2025 revolve around strategic alignment, technology adoption, capability building, and measurable impact. Organizations that embrace a risk based audit approach, foster strong relationships with audit committees, and invest in advanced analytics will see enhanced governance and resilient operations. The role of external partners, including internal audit consulting services, strengthens internal capabilities, accelerates transformation, and fills strategic skill gaps.

For multinational firms striving for excellence in governance and performance, adopting these internal audit practices not only safeguards compliance but also contributes to long term value creation. An Insights company approach to internal audit emphasizes data driven insights, continuous improvement, and strategic advisory that drive sustainable business outcomes in an increasingly complex global environment.