In recent years, the Kingdom of Saudi Arabia has undergone profound economic transformation under its Vision three zero initiative, reshaping everything from public governance to corporate practices. This evolution has had a direct impact on how businesses and institutions perceive and leverage internal audit consultancy services. Increasingly, audit committees in Saudi Arabia are rethinking traditional internal audit frameworks to address emerging risks, adapt to regulatory changes, and deliver strategic value to stakeholders. With the rise of technology risks, regulatory enforcement, and stakeholder expectations, audit committees are shifting internal audit from a compliance-centric function to a proactive strategic partner. This trend has opened opportunities for Advisory Companies in Saudi Arabia to play a major role in helping organisations accelerate their internal audit transformation and governance maturity.
Saudi audit committees now operate in a business environment markedly more complex than only a few years ago. Domestic reforms, international regulatory alignment, and the expansion of digital risks have driven boards and committees to question whether traditional internal audit models are fit for purpose. Rather than focusing solely on retrospective controls testing, internal audit must now anticipate emerging risks, guide enterprise risk management, and support corporate strategies. In this context, internal audit consultancy services have become increasingly relevant, offering specialised expertise that internal teams may lack. These services not only strengthen audit execution, but also enrich audit committees’ understanding of risk exposure and strategic gaps.
More importantly, audit committees in Saudi Arabia are rethinking internal audit because of tangible regulatory shifts and quantitative indicators pointing to governance evolution. For example, amendments to the Corporate Governance Regulations issued by the Capital Market Authority now mandate that listed companies establish internal audit units, adopt audit plans, and prepare detailed internal audit reports. These regulatory changes also require audit committees to have structured oversight responsibilities and active participation in appointing internal auditors. Such governance reforms have made internal audit an integral component of organisational accountability and transparency, fuelling deeper scrutiny from audit committees and oversight bodies alike.
The Strategic Drivers Behind the Shift
Regulatory Evolution & Governance Expectations
One of the foremost reasons Saudi audit committees are rethinking internal audit in 2026 is the rapid regulatory evolution seen across corporate governance frameworks in the Kingdom. The Capital Market Authority’s amendments embrace more rigorous obligations around internal audit functions, encompassing everything from appointment procedures to reporting standards. As of January 2024, several provisions now demand enhanced oversight by audit committees, including periodic reporting and active involvement in audit planning. This framework compels audit committees to scrutinise internal audit operations more critically, ensuring compliance and organisational resilience.
Against this backdrop, audit committees cannot rely solely on historical audit practices. They must adapt internal audit charters and methodologies to comply with evolving rules and demonstrate governance maturity. This shift has corresponded with increased expectations from investors, regulators, and international stakeholders. For instance, in 2024 approximately 94 companies disclosed sustainability practices, with disclosure among the top one hundred main market issuers increasing from around sixty five per cent to sixty five per cent, indicating heightened governance transparency across listed entities.
These developments require audit committees to elevate their oversight beyond compliance checks to strategic evaluation of risk frameworks. For many organisations, this has led to active engagement with professional internal audit consultancy services that help align internal audit operations with global best practices and regulatory expectations. These external experts provide independent perspective and technical depth, especially in specialist risk domains such as cybersecurity, AI governance, and ESG compliance.
Emerging Risk Landscape & Technology Disruption
A second strategic driver for rethinking internal audit is the dramatic shift in risk types confronting Saudi businesses and public entities. The rapid digitisation of operations, prevalence of data analytics, adoption of AI and automation, and increasing reliance on cloud ecosystems have made technology risk one of internal audit’s central concerns. A recent survey indicated that a significant portion of organisations do not fully integrate IT audits within their internal audit plans and lack in-house IT or cybersecurity expertise. This gap has forced audit committees to reconsider the scope and composition of internal audit functions, emphasising the need for specialised capabilities and forward-looking risk assessments.
The adoption of new technologies also elevates the importance of data analytics and automated testing tools within internal audit procedures. For example, generative AI and advanced analytics are now being piloted to enhance risk detection and real-time analytics. However, despite nearly ninety two per cent of internal audit leaders acknowledging the importance of data analytics, only a minority rate their current capabilities as advanced.
This mismatch between the pace of technological change and internal audit’s current technical maturity has encouraged audit committees to rethink their internal audit strategy and to consider co-sourcing or outsourcing specialised audit tasks. Here, internal audit consultancy services bring deep expertise in emerging risk areas, enabling internal audit teams to address gaps while audit committees gain confidence that critical exposures are actively managed.
Strategic Alignment & Value Creation
In addition to regulatory pressure and technological risk, audit committees are also refocusing internal audit to harness greater strategic value for the organisation. Traditional internal audit models emphasised retrospective compliance checks and standard controls testing. Today’s audit committees demand internal audit functions that actively evaluate whether enterprise strategies are aligned with risk appetites and drive performance outcomes.
Insight-driven audit functions help organisations uncover hidden risks, assess strategic execution challenges, and suggest actionable improvements that impact financial performance and operational efficiency. This shift towards strategic risk insight has made internal audit a more forward-looking and advisory-oriented function, often working closely with management and boards to influence decision-making. As a result, the audit committee’s role has expanded to reviewing internal audit’s contributions to enterprise risk governance, value optimisation, and organisational resilience.
Audit committees increasingly require internal audit reports that move beyond control weaknesses to address systemic risks, future scenarios, and alignment with long-term strategic goals. As internal audit evolves into a partner in governance and strategy, advisory practices that blend assurance with industry insights have become invaluable. This convergence underscores why many organisations now invest in internal audit consultancy services that provide fresh perspectives and augment internal teams.
Quantitative Trends Influencing Audit Committees in Saudi Arabia
To fully grasp why Saudi audit committees are rethinking internal audit, it is important to highlight some recent quantitative indicators illuminating this trend:
• Evolving Role of Internal Audit: According to a global internal audit pulse report, approximately nine out of ten chief audit executives now hold responsibilities that extend beyond traditional functions, including strategic risk oversight and governance partnership.
• Integration of Advanced Tools: Around forty one per cent of internal audit leaders reported using generative AI tools to enhance audit processes in 2025, signaling growing adoption of digital capabilities within audit functions.
• Technology Audit Gap: A prominent survey revealed that twenty six per cent of organisations in Saudi Arabia do not integrate IT audits into their internal audit plans, and forty four per cent lack specialised IT or cybersecurity personnel.
• Audit Committee Influence: In the same survey, seventy one per cent of respondents agreed that audit committees add value and provide effective oversight on internal controls, reflecting stronger governance engagement and strategic insight from oversight bodies.
These figures spotlight key pressure points influencing audit committees namely technological integration, risk complexity, and governance expectations all of which are pushing internal audit functions toward comprehensive transformation.
The Role of Advisory Partners and Corporate Governance Culture
In this dynamic environment, Advisory Companies in Saudi Arabia have become crucial allies for audit committees and management teams. These firms provide tailored audit transformation support, risk optimisation frameworks, and best-in-class methodologies designed to enhance audit quality and effectiveness. Whether delivering bespoke risk assessments, designing AI-augmented audit programmes, or advising on regulatory compliance, advisory practices offer specialised expertise that internal teams may not possess.
Given the rapid pace of business change and the breadth of risks organisations face, audit committees often draw upon Advisory Companies in Saudi Arabia to supplement internal capabilities. These partners help committees understand evolving risks, evaluate internal audit performance objectively, and ensure alignment with both regulatory obligations and strategic priorities.
Internal Audit in Saudi Arabia in 2026 and Beyond
By 2026, Saudi audit committees are expected to further embed internal audit within strategic governance frameworks. Key trends likely to shape the future include deeper integration of advanced analytics, ongoing talent development, and continuous enhancement of risk foresight capabilities. The continued global emphasis on governance quality, sustainability reporting, and cyber-risk resilience will further strengthen internal audit’s role as a strategic enabler rather than a purely compliance-centric function.
As audit committees continue to challenge traditional models, organisations that invest in high-quality internal audit consultancy services and partner with leading Advisory Companies in Saudi Arabia will be better positioned to anticipate risk, protect stakeholder value, and drive sustained competitive advantage.
In conclusion, the rethinking of internal audit by Saudi audit committees is not only a response to regulatory changes but a proactive decision to unlock governance value, adapt to technological complexity, and align assurance with strategic objectives. In a landscape where risks are rapidly evolving and stakeholder expectations are rising, redefining internal audit will remain a central agenda for boards and committees across sectors in the Kingdom.
Finance Advisory 