Internal Audit and Corporate Governance Controls That Reduce Operational and Financial Risk
Compliance with the Corporate Governance Regulation (لائحة حوكمة الشركات) framework — the CMA version for listed/CMA-supervised entities, or the Ministry of Commerce's Corporate Governance Guide for unlisted LLCs — plus compliance management (إدارة الالتزام), risk register (سجل المخاطر) preparation, Audit Committee (لجنة المراجعة) support, and internal control framework design.
The short answer
Internal audit is an independent check, during the year, that a company's controls, risk management and governance actually work. In Saudi Arabia the governance framework depends on company type: the Capital Market Authority's Corporate Governance Regulations for listed companies, and the Ministry of Commerce's Corporate Governance Guide for unlisted companies and LLCs. Our 6-step method tests the four operational areas we audit most often: sales, procurement, inventory and HR.
Reviewed by Noura Alderaan, SOCPA Fellow (No. 1379) ·
Official sources: Capital Market Authority (CMA) ↗Ministry of Commerce ↗
Why this matters
The finance and board leadership of a mid-large company needing to demonstrate corporate governance compliance under the framework that actually applies to them, or tighten internal processes.
- Whether this actually satisfies the governance framework that applies to our company type
- How much disruption it causes day-to-day
- Practical fixes, not a compliance checklist
Our Methodology
- 1Risk assessment and scope agreed with finance leadership
- 2Process walkthroughs and control testing
- 3Findings reviewed for practicality, not just compliance
- 4Follow-up review to confirm fixes actually held
Why Entry Post CPA
Corporate governance compliance advisory — CMA Corporate Governance Regulation for listed/CMA-supervised entities, or the Ministry of Commerce's Corporate Governance Guide (الدليل الاسترشادي لحوكمة الشركات) for unlisted LLCs
Compliance management (إدارة الالتزام) program design
Risk register (سجل المخاطر) and risk management policy preparation
Audit Committee (لجنة المراجعة) charter, formation, and duties support
Nomination & Remuneration Committee (لجنة الترشيحات والمكافآت) and Conflict of Interest Policy (سياسة تعارض المصالح) support for CMA-supervised entities
Segregation-of-duties and workflow mapping
Operational audits: sales, procurement, inventory, HR
6-step methodology built for minimal operational disruption
Engagement partner: Noura Alderaan — continuity a rotating network team can't match
Coordinated in-house by our Assistant Audit Manager for day-to-day scheduling and fieldwork
Frequently Asked Questions
What is internal audit, and how is it different from an external audit?
Internal audit tests during the year whether your controls, risk management and governance work, and reports to management or the audit committee; an external audit gives an independent opinion on the annual financial statements for shareholders, banks and regulators. A company can use both.
Which corporate governance regulation applies to my company — CMA or Ministry of Commerce?
It depends on your company type. The CMA's Corporate Governance Regulations apply to listed and CMA-supervised companies; most unlisted companies and LLCs follow the Ministry of Commerce's Corporate Governance Guide. Tell us your company type and we will confirm which framework applies.
Can internal audit be outsourced to an outside firm?
Yes. We provide internal audit as a standalone, outsourced or co-sourced service, and you do not need to be an audit client. If we are already your external auditor, we follow the independence rules of the Code of Ethics endorsed by SOCPA and agree with you which services we can provide.
What does compliance management (إدارة الالتزام) involve?
A programme that lists your regulatory obligations, assigns an owner to each one and checks that they are actually met — the process that keeps it current, not just a policy document.
What is a risk register, and does our company need one?
A risk register (سجل المخاطر) is a log of your key risks, their likelihood and impact, and the control for each. Boards, lenders and large tenders increasingly ask to see one; we build it from your actual operations, not a template.
How do you support an audit committee (لجنة المراجعة)?
We draft the committee charter (لائحة عمل اللجنة), support its formation and guide members on their duties, scoped to the governance framework that applies to your company.
Which areas does an operational internal audit cover?
Sales, procurement, inventory and HR are the areas we audit most often; segregation of duties and workflow mapping are part of every engagement.
Will an internal audit disrupt daily operations?
As little as possible: our 6-step method is built to keep day-to-day disruption low, and our Assistant Audit Manager coordinates scheduling and fieldwork.
What is the difference between internal audit and enterprise risk management (ERM)?
Internal audit tests whether existing controls actually work; ERM is the wider, ongoing process of identifying and managing risk across the company. We support both — the risk register and risk management policy sit on the ERM side.