The effect of internal audit on enhancing the quality of financial reports in the government institutions: Mediating role of risk management

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Internal audit is a critical pillar for an organization’s survival and development (Kai et al., 2022; Dellai & Omri, 2015). This study aimed to identify the effect of internal audit on enhancing the quality of financial reports in the government institutions of Saudi Arabia and the mediating role of risk management. The study population comprised all employees and administrators working in government institutions in Saudi Arabia, and the study sample included 369 members. The study adopted a descriptive-analytical approach and employed a questionnaire as a research tool, and used linear regression to analyse the data. The findings showed that internal audit can be considered a supporting tool for risk management, which in turn is the most influential factor in ensuring the quality of financial reporting in government institutions. The outcomes of this study are beneficial to other countries, especially those in the Middle East or the Gulf Cooperation Council.

Keywords: Saudi Arabia, Government Institutions, Internal Audit, Risk Management, Financial Reporting

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G10, G21, G30

Received: 01.06.2025
Revised: 24.08.2025; 08.10.2025
Accepted: 24.10.2025
Published online: 29.10.2025

How to cite this paper: Almahuzi, A. S. (2025). The effect of internal audit on enhancing the quality of financial reports in the government institutions: Mediating role of risk management. Risk Governance and Control: Financial Markets & Institutions, 15(4), 43–53. https://doi.org/10.22495/rgcv15i4p4