The internal audit profession in Saudi Arabia stands at a pivotal inflection point as the Kingdom accelerates its digital transformation, regulatory modernization, and economic diversification under Vision 2030. For organisations across the public and private sectors, consulting services internal audit remain indispensable in navigating emerging risks, demonstrating compliance, and unlocking performance insights. In this context, Insights consultancy emerges as a critical advisor, helping internal audit leaders anticipate trends and drive value beyond traditional assurance.
Recent industry surveys and events paint a picture of transformation and opportunity. Data from 2025 demonstrates that approximately 26 percent of Saudi organisations have not yet integrated IT audits into their audit plans, while 44 percent lack internal expertise in IT or cybersecurity within their internal audit functions. These figures underscore a clear need for specialised skills and disciplined approaches that consulting services internal audit can deliver.
This article explores the trajectory of internal audit in Saudi Arabia as we near 2026, focusing on technological innovation, strategic evolution, regulatory dynamics, skills development, and the role of external expertise from Insights consultancy.
The Current State of Internal Audit in Saudi Arabia
Internal audit in Saudi Arabia has traditionally focused on key control evaluations, compliance reviews, and financial reporting assurance. However, this scope is widening rapidly. According to recent industry analysis, internal audit functions are now expected to align with enterprise strategy, evaluate risk in the context of organisational execution, and anticipate future vulnerabilities not merely report past issues.
Compelling statistics from 2025 highlight the urgent need for evolution:
- 26 percent of organisations have yet to incorporate IT audit procedures in their internal audit strategies.
- 44 percent lack personnel with technical expertise in IT and cybersecurity.
- 53 percent express confidence in their ability to identify and assess emerging risks, indicating growing risk maturity.
These figures reveal not only gaps but also a rapidly shifting risk landscape. The increasing prevalence of digital business processes, cloud platforms, and data‑driven operations demands that internal audit transform itself from a compliance exercise into a strategic risk partner, a role where consulting services internal audit offer high‑impact frameworks and specialised capabilities.
Regulatory and Governance Drivers
Saudi Arabia’s regulatory environment is becoming more robust and prescriptive regarding internal audit. In 2024, key corporate governance reforms required internal audit functions for listed companies and those in regulated sectors, strengthening reporting expectations and audit planning rigour.
This formalisation of audit mandates ties directly to heightened expectations from investors and regulators alike. The Tadawul Saudi Stock Exchange reached an approximate market capitalization of 9.66 trillion Saudi riyals by October 2025, reflecting growing investor interest and scrutiny of governance practices.
In this environment, Saudi boards and audit committees are seeking more than just risk compliance. They demand value‑creating insights that help boards make informed strategic decisions. Internal audit practitioners therefore must cultivate analytical skills and strategic judgement, often through partnerships with experienced external providers like Insights consultancy that can inject global best practices and benchmarked methodologies.
Digital Transformation and the Rise of Technology‑Driven Audit
The Kingdom’s rapid push toward digitalisation is a defining factor shaping the future of internal audit. Studies and sector reports highlight how artificial intelligence, advanced analytics, cloud computing, and automation are creating new opportunities and new risks for internal auditors.
Technology is no longer a back‑office concept; it is core to operational risk and strategic execution. Leading firms report that technology risks such as data privacy concerns, cloud vulnerabilities, and ethical AI use are among the most critical audit priorities.
Internal audit professionals are now leveraging data analytics to process vast datasets faster and extract actionable insights that were previously inaccessible. Continuous auditing and real‑time monitoring approaches, powered by analytics, are replacing manual sampling techniques, especially in fraud detection and control testing. These advancements enhance assurance and position internal audit as a partner in operational improvement.
Consulting services internal audit, particularly from providers specialised in digital risk and transformation, help organisations build audit frameworks that fully incorporate machine learning, automated testing, and predictive risk modelling.
Skills and Talent Imperatives
A major challenge facing internal audit in Saudi Arabia is talent readiness. With only a minority of organisations possessing in‑house IT audit capabilities and cybersecurity expertise, there is a significant skills gap.
To address this, internal audit leaders are focusing on reskilling and upskilling teams in areas such as:
- Data analytics and continuous auditing techniques
- Cyber risk and information systems audit competency
- AI governance and ethical risk assessment
- Business process understanding and strategic risk analytics
Embedding digital literacy into audit competencies is crucial as organisations increasingly depend on automated controls and real‑time risk reporting. Therefore, many internal audit functions are investing in partnerships with experts to enhance capability development again underscoring the value of consulting services internal audit.
Evolving Roles: From Assurance to Strategic Advisory
Increasingly, internal audit’s remit is expanding beyond assurance to include strategic advisory. At the 6th Internal Audit Forum in Riyadh in 2025, more than 550 audit and governance leaders convened to discuss AI innovations and the expanding role of internal audit in institutional sustainability.
A standout insight from global audit thought leaders is that internal audit will increasingly focus on advisory work, exploring strategic business risks and performance improvement areas. This evolution mirrors global trends where audit teams serve boards and executives with insights that inform strategic decision making rather than serve purely as a compliance checklist.
In such landscapes, organisations that leverage external expertise particularly from specialists like Insights consultancy gain distinct advantages in shaping forward‑looking audit roadmaps and aligning audit outcomes with broader organisational objectives.
The Impact of Emerging Risks
By 2025 and heading into 2026, a range of emerging risks are reshaping the internal audit agenda in Saudi Arabia, including:
- Cybersecurity and data privacy: As digital footprints expand, auditors are expected to evaluate governance over information security and incident response frameworks.
- Regulatory complexity: The Saudi regulatory regime is becoming more intricate, requiring audit practices attuned to compliance across financial, technology, and corporate governance standards.
- Economic volatility: Global macroeconomic pressures and supply chain disruptions create new layers of operational risk that require proactive audit engagement.
- AI and automation risks: Auditors are now tasked with validating the integrity, bias, and ethical usage of AI systems within business processes.
These risks are not merely theoretical—they are reshaping internal audit workplans and demanding that audit leaders build new methodologies, tools, and risk assessment frameworks to stay ahead. Consulting services internal audit frequently play a key role in establishing this strategic risk lens for organisations navigating digital complexity.
Preparing for 2026 and Beyond
Looking ahead to 2026 and beyond, internal audit will be defined by agility, strategic foresight, and digital fluency. To remain relevant and impactful, Saudi organisations should consider these imperatives:
Adopt risk‑based and analytics‑driven audit planning
Dynamic risk landscapes require audit plans that continuously update in response to changing threats and opportunities.
Invest in talent and capabilities
Bridging the skills gap in digital and strategic competencies is essential.
Embrace advisory value
Internal audit must transition from a compliance function to a value‑adding advisory partner for leadership.
Leverage automated tools and AI
Technology must be integrated into audit methodologies to provide deeper insights and real‑time assurance.
Collaborate with specialised partners
External expertise like Insights consultancy and dedicated consulting services internal audit can catalyse transformation, ensure best practice alignment, and accelerate capability development.
A Strategic Inflection Point
As 2026 approaches, internal audit in Saudi Arabia is transitioning from a traditional assurance role into a strategic enabler of governance, risk management, and value creation. Regulatory momentum, digital transformation, and evolving risk environments demand that organisations expand audit capabilities, embrace technology, and adopt a forward‑looking mindset.
Consulting services internal audit and Insights consultancy play pivotal roles in shaping this transformation. By combining deep industry knowledge, technological expertise, and strategic advisory capabilities, these partners help organisations navigate complexity and unlock the full potential of internal audit.
Ultimately, the future of internal audit in Saudi Arabia is not simply about compliance—it is about resilience, foresight, and strategic partnership with business leadership. Organizations that invest in these priorities will find internal audit not just a regulatory requirement but a powerful driver of performance and sustainable growth.
Finance Advisory 