As Saudi Arabia continues its economic transformation under Vision 2030, organizations are reimagining governance, risk management, and corporate culture. The internal audit function is no longer viewed merely as a compliance gatekeeper; it has evolved into a strategic partner that shapes decisions, builds resilience, and fosters ethical business practices.
In this dynamic environment, the most forward-thinking Saudi organizations are embracing a Beyond Compliance Strategy that integrates risk awareness, innovation, and people development. Building a strong Internal Audit Risk Culture is central to this shift empowering auditors not only to detect issues but to proactively prevent them while motivating teams to deliver excellence.
For a quick overview, the table below summarizes key 2025 metrics relevant to your “Beyond Compliance Strategy”.
| Area of Focus | Key Quantitative Data (2025) | Source / Context |
|---|---|---|
| Internal Audit’s Strategic Role | ~90% of Chief Audit Executives (CAEs) have responsibilities outside traditional internal audit (e.g., fraud, ethics). | 2025 IIA Pulse of Internal Audit Report |
| 33% of CAEs are now accountable for Enterprise Risk Management (ERM), a significant rise from 24% nine years ago. | 2025 IIA Pulse of Internal Audit Report | |
| Technology & Data Capabilities | 92% of CAEs believe data analytics is crucial, but only 28% rate their function’s capabilities as “high or advanced”. | 2025 IIA Pulse of Internal Audit Report |
| 41% of CAEs report using Generative AI, with adoption higher among younger leaders (52% of Millennials). | 2025 IIA Pulse of Internal Audit Report | |
| Saudi Vision 2030 Progress | Non-oil GDP now constitutes 50% of the economy (2023 data, a key milestone on the path to 2030). | Vision 2030 Annual Report |
| SME contribution to GDP grew to 50% (2023), a 108% increase since 2016, against a 2030 target of 35%. | Vision 2030 Annual Report | |
| The number of Umrah pilgrims reached 13.56 million in 2023, surpassing that year’s target of 10 million. | Vision 2030 Tourism Goals |
Internal Audit Risk Culture: The Foundation of Organizational Resilience
A well-embedded Internal Audit Risk Culture acts as an early warning system that detects emerging risks before they escalate into crises. Rather than simply checking compliance boxes, internal auditors are becoming the custodians of integrity and risk intelligence.
In the Saudi business landscape, especially in sectors like energy, finance, and manufacturing, this culture enables organizations to anticipate market, operational, and regulatory challenges more effectively. A robust audit risk culture encourages collaboration between departments, transparency in reporting, and accountability in decision-making.
When employees understand that risk management is everyone’s responsibility, not just the audit department’s, organizations begin to thrive under uncertainty. This culture aligns perfectly with the national agenda of transparency, ethical governance, and excellence in performance.
Beyond Compliance Strategies: Redefining the Role of Internal Audit
The evolution of the internal audit function from a reactive compliance checker to a proactive, strategic advisor is being accelerated by new global standards and technological disruption. In Saudi Arabia, this shift is not just a best practice, but a core component of achieving the governance and transparency goals outlined in Vision 2030.
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Strategic Partnership in Action: Modern internal audit functions are now expected to be strategic partners. A 2025 report reveals that while 82% of internal audit functions report an increase in their impact, only 14% believe they have realized their full potential, highlighting a significant opportunity for growth in this strategic role.
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The New Global Standards: The Institute of Internal Auditors’ (IIA) new Global Internal Audit Standards, effective January 2025, are a major catalyst for this change. They demand that the internal audit aligns more closely with organizational goals and provides performance-focused insights, not just assurance of controls
Key Components of a Modern Beyond Compliance Strategy
The following table outlines the core components of a forward-looking internal audit strategy, supported by 2025 data and trends:
| Strategic Component | 2025 Insights |
|---|---|
| Embedding Risk Awareness | Organizations with a robust risk culture are shown to outperform their peers. The focus is on integrating Enterprise Risk Management (ERM) into business decision-making, with internal audit playing a key role in assessing its effectiveness. |
| Data-Driven Auditing | 62% of internal audit functions are planning investments in data analytics. However, a 2025 IIA Pulse report notes that while 92% of leaders see analytics as crucial, only 28% rate their function’s capabilities as “high or advanced,” indicating a significant skills and implementation gap. |
| Ethical Leadership | The 2025 IIA Standards place a heightened emphasis on the internal audit’s role in championing ethics and integrity, directly challenging management when necessary. This moves beyond controls to assessing the “tone at the top” and organizational culture. |
| Stakeholder Collaboration | The new standards require early and frequent communication with management, the board, and other stakeholders. This fosters the “trusted advisor” relationship and ensures audit objectives are fully aligned with organizational goals. |
Emerging Frontiers for Internal Audit
To fully transform into a strategic enabler, internal audit functions in 2025 are focusing on several new frontiers:
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Adopting Generative AI: Generative AI (GenAI) is revolutionizing audit processes, from risk assessment to reporting. Nearly 40% of Chief Audit Executives (CAEs) are planning GenAI investments to boost quality and efficiency. However, adoption is in early stages, with one report noting that only 2-4% of internal auditors have made significant progress.
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Bridging the Talent Gap: Evolving responsibilities are creating talent shortages, especially in ESG, IT, and forensic skills. To cope, over 62% of finance leaders face hiring challenges, leading many firms to use interim consultants for specialized skills and capacity.
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Shifting to Advisory Services: The IIA’s Vision 2035 report predicts a major shift in how auditors spend their time. Currently, about 75% of the time is spent on assurance, but this is expected to fall to 59% by 2035, with advisory services rising to 41%
Building Internal Audit Team Capability: The Core of Modern Audit Excellence
A high-performing audit function depends on the capability and adaptability of its team. Building Audit Team Capability is, therefore, a key priority for Saudi organizations navigating today’s complex regulatory and ESG environments.
Strong audit teams combine technical proficiency with business acumen, digital fluency, and ethical leadership. As new technologies, such as AI, automation, and data analytics, reshape auditing, continuous skill development becomes critical.
The most effective internal audit functions in Saudi Arabia are investing heavily in structured training, mentorship, and cross-departmental learning. This helps ensure that auditors not only meet compliance requirements but also understand strategic objectives and contribute to long-term organizational success.
Moreover, a capable audit team fosters confidence among stakeholders and regulators, demonstrating that the organization is proactive in risk oversight and governance excellence.
Internal Auditor Training and Development: Investing in the Future of Audit
To sustain excellence, organizations must adopt a structured and ongoing Internal Auditor Training and Development framework. In 2025 and beyond, the skills demanded of auditors are expanding beyond traditional financial review to include ESG assurance, digital risk, data governance, and strategic advisory.
A modern training program should focus on:
- Technical Mastery: Strengthening expertise in auditing standards, risk analytics, and control frameworks.
- Soft Skills: Enhancing communication, leadership, and stakeholder engagement capabilities.
- Digital Competency: Equipping auditors with tools and knowledge in automation, AI, and cybersecurity risk.
- Ethical Decision-Making: Cultivating integrity and independence in every aspect of the audit process.
Saudi organizations that prioritize such training not only improve audit quality but also attract and retain top talent, creating a culture where internal auditors feel valued, empowered, and motivated to make a difference.
The 2025 Internal Auditor: Driven by Impact & Innovation
The motivation of today’s internal auditors is increasingly linked to their function’s strategic impact. According to 2025 global perspective, while 82% of internal audit functions report an increase in their impact, only 14% believe they have realized their full potential. This “impact gap” represents a powerful motivational lever for leaders. Auditors are no longer satisfied with a narrow compliance role; they are driven by the opportunity to provide forward-looking insights and shape organizational resilience.
In Saudi Arabia, this drive for purpose is amplified by Vision 2030’s economic transformation. Auditors are not just corporate employees but active contributors to national growth, making their role in fostering good governance and transparency more critical than ever.
Key Motivation Strategies for Saudi Organizations
The following table outlines two core strategies, updated with 2025 data and specific actions you can implement.
| Strategic Pillar | 2025 Insights & Quantitative Data | Recommended Actions |
|---|---|---|
| Fostering Engagement & Collaboration | A 2025 IIA article highlights that emerging leaders are motivated by innovation and cross-functional influence. Professionals like Stephen Odipo in Kenya drive engagement by automating audit tests, while Shayla Johnson at UPS modernizes compliance programs through her role in a dedicated Audit Leadership Accelerator program. | • Create innovation champions to pilot new technologies like GenAI and data analytics. • Establish formal rotation programs or “accelerator” groups to fast-track leadership development. • Implement collaborative digital platforms that can boost team engagement by 30-40%, according to studies on online learning communities. |
| Empowering Continuous Growth | Source identified that high-performing internal audit teams embrace a “learn, do, teach” culture, investing 50-75 training hours per auditor annually. Furthermore, nearly 40% of Chief Audit Executives are planning investments in Generative AI, making upskilling in this area a key retention tool. | • Sponsor certifications like the Certified Internal Auditor (CIA), which has updated its syllabus for 2025 to align with new Global Internal Audit Standards. • Develop in-house GenAI and data analytics training to build future-ready skills. • Leverage The IIA’s Emerging Leaders Mentoring Program (2025-26) to connect your talent with global peers. |
Two Critical Focus Areas for Saudi Internal Auditors in 2025-2026
- Integrating Risk Culture into Organizational DNA
- Saudi organizations must move from risk awareness to full cultural integration.
- Embed Internal Audit Risk Culture into leadership communications and performance metrics.
- Use real-world scenarios and workshops to connect daily operations with broader risk objectives.
- Foster accountability across all business functions through transparent governance systems.
- Building Sustainable Talent Pipelines in Auditing
- Sustainability in auditing isn’t just environmental, it’s human.
- Establish continuous Internal Auditor Training and Development initiatives to address emerging skill gaps.
- Promote diversity in audit teams to enhance innovation and decision-making.
- Link audit performance with overall Workforce Motivation in Auditing to retain the best professionals.
How Insights KSA Can Help You
At Insights KSA, we understand that the success of internal audit functions depends not only on frameworks but also on people and culture. Our solutions are tailored to help Saudi organizations build an Internal Audit Risk Culture, strengthen talent pipelines, and develop forward-looking Beyond Compliance Strategies that align with Vision 2030.
Here’s how Insights KSA can support your organization:
- Audit Capability Development: We design customized training programs that enhance technical and leadership skills for auditors.
- Risk Culture Frameworks: We help you embed sustainable Internal Audit Risk Culture through governance alignment and strategic risk integration.
- Talent Motivation Programs: Our workforce engagement models foster purpose-driven motivation and retention.
- Agile Audit Transformation: We guide teams to adopt data-driven and adaptive audit practices suitable for Saudi market dynamics.
- Leadership Coaching: Empower audit leaders with modern management tools to inspire high-performing, resilient teams.
Partnering with Insights KSA enables organizations to elevate internal audit from a compliance function to a catalyst for trust, innovation, and cultural excellence. The internal audit model of 2025 is driven by vision, people, and a strong risk-aware culture, not checklists. Saudi organizations that invest in auditor capability, training, and alignment with strategic goals will lead in integrity and performance. When empowered, internal auditors help organizations thrive amid complexity. With Insights KSA, businesses can build a resilient audit ecosystem that strengthens culture, supports people, and secures long-term success.
FAQs
How does effective internal auditing contribute to a culture of continual improvement? Continual improvement: Internal audits foster a culture of continual improvement by providing a comprehensive review of processes, identifying nonconformities, and suggesting amendments that enhance the management system.
What are the 5 Cs of internal audit? The “Five C’s” are criteria, condition, cause, consequence, and corrective action.
How does an internal audit contribute to risk management? Non-compliance with laws and regulations can lead to legal penalties and reputational damage. Internal auditors ensure that the business adheres to industry-specific laws and internal policies. They assess compliance frameworks and recommend improvements to reduce compliance risks.
How do you build a culture of continuous improvement? To embed a culture of continuous improvement, staff at all levels need to support and champion continuous improvement. Establishing a culture of continuous improvement requires staff to have a shared purpose and clear vision of what continuous improvement means for the organization.
Why is internal audit important in a highly regulated industry? These audits are crucial for assessing the effectiveness and efficiency of processes and systems, identifying areas for improvement and ensuring compliance with internal (e.g. workplace safety policies) and external (e.g. regulations or customer demands) requirements.
