Literature Review of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

As per the studies of Badara & saidin (2013) for ensuring the objective which is being achieved by the organization is played vital role for making sure to achieve objective, same as for the achievement of objective audit is used for contributing about internal audit experience. On mark of this, the main purpose of this study paper is to have an experience between the internal audit and audit experience for the effectiveness in line with public sector society.  In the public organization sectors internal audit will have first-hand experience for the effectiveness for the literature evaluation paper.  Authenticated is important for the paper. Being informed about the factors, which is take part to affect the internal audit effectiveness as it, will follow the four vital parts of process within the organization.

Teaching (guide the staff of organization the way to work better), motivation (to improve the performance ensure audit.) deterrence (make it sure to discourage the points which distract the organization ) process improvement (make in ensure though audit process that everything is working in a way as it should be) hence for the effectiveness of internal audit empirical and conceptual ways to wide-ranging study for the purpose of internal audit efficiency, furthermore, on the aspect of internal audit needs more focus on all-inclusive study for bother empirical and conceptual by reflect the few literature for the gauging of auditing efficiency and particularly for the public groups of sectors, which needs to completed.  Same as Private and public companies bother are getting increase the demand of audit involvement. It is due to that good practices of audit are prevailing for better hands on audit practice to get the best output from audit will have the impact to audit success.

They are able to response positive to their customers’ needs and their hopes, requirement and needs are there as these will help to aware the different standards of auditing practices. In public sector the internal audit effectiveness and experience of audit present the relationship of which is being present in the paper.  It is being considers and implanted by this paper that experience of audit is independent adjustment; which is being reviewed of conceptual literature specially at public sector.  Since the limitations are there for the paper, it is being extending the literature of the paper by contributing to information for the effectiveness of internal audit not only limited to public sectors.

Moreover, with the relations to experience to audit being recommended as further research may needs to be carry out for the effectiveness of internal audit in sector of public, internal audit effeteness. Moreover, it is needed for contribute to paper in public sector as more anxiousness is being carry out for private sector as per this paper which also flops to reflect the effectiveness of audit on account to relation between the internal audit effectiveness and audit experience. Notwithstanding the detail as this is paper is used for the going PHD research for thesis. Moreover, by using he different type of analysis amount different type of counties validate the research in different public sector of organizations, furthermore additional research is needed for the deportment for the effectiveness of internal audit (Badara & Saidin, 2013).

2.1 Impact on Governance Apparatus of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

As per the studies of AL-Janadi, Rahman, & Omar (2013); the objective is to obtain the internal and external corporate supremacy device by the impact on governance apparatus for the disclose as voluntary in Saudi Arabia. The model involves 87 associations from the Saudi Stock Market. The data are gathered from the yearly reports for the available budgetary years 2006, 2007. It is found that corporate organization segments accept a work in giving quality declaring. Most corporate organization instruments, especially non-official companies, board gauge, CEO duality, audit quality, and government proprietorship, have a basic duty in giving quality firm presentation. The disclosures of this examination give confirmation on the reasonability of corporate organization as a part of seeing ability to give customers attractive and sufficient information. The revelations of this examination have imperative effects for power controllers, approach makers, financial specialists and distinctive customers of reports who have an excitement for best practices of corporate organization.

The corporate organization structure has started to set up strong roots in the Middle East markets, particularly from the soonest beginning stage of this period. Besides, it is further maintained by a couple of all-inclusive affiliations which are normally involved with corporate group. the OECD had left on educating the corporate groups which is being action in the Middle East and North Africa (MENA). The OECD – MENA movement is away to streamline the organization structures and proceeding with corporate organization practices in MENA countries. Besides, it remains away to improve the practices and condition for eagerness for the zone. Appropriately, the code of corporate organization was developed in Saudi Arabia in year 2006. Edible exposure of information is important considering the way that without such data, it isn't possible to properly condemn the odds and risks of endeavor.

There is weakness about the idea of firms (e.g. to the extent the option of their favorites and peril of cash streams) and their securities. As such, financial authorities ask for info to study the arranging and vulnerability of current and upcoming cash streams with the impartial that they may respect firms and settle on other attempt choices. Furthermore, extra revelation will help examiners with decreasing the likelihood of settling on the wrong endeavor decisions. Moreover, the change in the earth and the postponement in business multifaceted nature are hitting forth climb to additional solicitations for information (FASB, 2001). Relations satisfy this interest by purposely giving extra information in their yearly reports. The revelations on corporate organization parts reveal that internal and outside corporate organization.

Feedback is being provided to the regulators of Saudi Arabia in the stock market with the concern for the rank of practice of corporate governance for supplying adequate information. Furthermore, as per this study it helps to share the data for the effeteness of governance mechanism in colporteur aspect. It also has the research in the study, as this will help to improve the regulators which will force the corporate governance mechanism which will reflect the inefficacy of the the committee of audit. This kind of improvement can be implemented by setting rules which will not only clear the audit committee roles.

The one active avenues to have the future research is that to highlight the study and expend it to other countries of Arab, as these are the countries which are underneath the GCC umbrella or can be choose from other Arabic countries of difference reigns to have their comparison. Other areas of research are to have the further attribute of the additional effectiveness of examination for corporate governance based on disclosure of information on voluntary basis, like other ways of structure ownership like concentration ownership, formal ownership) (Al-Janadi, Rahman, & Omar, 2013)

2.2 Managers of Public Sector Companies of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

According to Alzeban & Gwilliam (2014), the internal audit had great influence on company. Auditing focused on the effectiveness of the company and it was related to the performance of the company. Saudi Arabia considered one of the largest and major export countries in world. The effectiveness of company has great impacts on the leadership and management. According to Alzeban & Gwilliam (2014), for analysis the data collected was based on 203 managers of public sector companies. The data was collected from 239 internal auditors of public sector companies. The data collection was done from 79 Saudi Arabian companies. Analysis of data collected was measured for multiple regressions. The analysis was done among IAE and the selected five principal as factors. Internal audit in any company have the record and previous data related to company performance. Internal auditors of companies hold the strong position and play vital role in managing the company affairs. The analysis supports the management for IAE and helps in achieving the goals. IAE results showed that effectiveness of the internal audit. The results showed that internal audit had strong influence on managing affairs and management hold strong perspective. The support of management helped in understanding the internal environment of companies (Alzeban Abdulaziz & Gwilliam David, 2014).

According to Alzeban & Gwilliam (2014), hiring was done on regular basis in public sector companies. It was determined that management is responsible for hiring and training the staff in public sector companies. Management was responsible for hiring the trained and experienced staff. In public sector companies, management was responsible for providing the all kind of resources and sufficient resource for getting the desire results. The management of companies was responsible for establishing relationship among the internal auditors and external auditors. The external auditors are independent and they have strong position to check the companies’ real position. The status of companies determine in market with their level of growth. The public sector companies were responsible for increasing their worth. The internal environment of companies determines their position in national and international market. The management of these public sector companies in Saudi Arabia has strong influence and the effectiveness of decision-making process.

According to Alzeban & Gwilliam (2014), the governance of companies played important role for holding strong position in market. Companies monitor the market and make internally strong for solving the problems and issues. The internal environment of the companies supports the management to make right decision. The internal audit of companies presented the clear view and audit was considered as mirror of companies’ performance. The traditional governance style of companies was changed with change in technology. Moreover, it was determined that specific culture is suitable for companies. The labor supports the companies’ decision by working on right direction.

According to Alzeban & Gwilliam (2014), for internal unity and progress it must be noted that core religious beliefs. The internal and external environment of companies favors the performance of company. The regional business environments have strong effects on the productivity of companies. Saudi Arabia was included in most developing country and country environment favor the business activity. GCC countries favor the business and it was due proactive measures taken by governments. Arab countries were strongly in favor of business activities. The internal audit of all gulf countries especially Saudi Arabia shows that country is on the way of progress. Companies were covering the path of development and progress. Companies have strong and busy schedule of working throughout the year (Alzeban Abdulaziz & Gwilliam David, 2014).

Saudi government is supporting the companies for generating income as government want to reduce dependence on oil money. The effectiveness of IAE is considered more important as it show the growth rate. The investors deeply absorb the companies’ condition and it was good for country on international level. The mangers of public sector companies were responsible for managing the demand of supply. The factors have strong impacts on performance of companies. Public sector companies have strong influence of IAE and especially in Saudi Arabia. The study determines that the nation who is fair in their internal audit is reliable for investment and business activities.

According to Alzeban & Gwilliam (2014), monitoring played a vital role in measuring the companies’ effectiveness IAE. The effectiveness of companies was based on how effectively internal audit is done by the management. The monitoring systems of companies are more focused and have complete guidance. The financial compliance was the most valuable thing and it has strong impacts on performance. The auditing of internally influence can be determined the direction of companies in internal and external market. However, in the recent past year’s companies’ management played significant role for progress or development. The study determine that internal consulting among the management have wider role for managing the risk. The factor of risk attack on the performance and destroy the effectiveness of internal audit.

Companies hold the strong financial background but due to poor internal audit losses all the assets. It was good saying that labors are the real asset of company. Risk management in companies has strong impacts and effects even after hard work. Companies’ leadership and management internally and externally manage or handle the risk situation. It was determined that how companies were affectively measures the internal auditing and how it effectively share in performance. The performance and effective of internal audit were the two factors that have strong influence on psychology of management. Management spends thousands of dollars for training the staff and for handling the verse situations. Internal auditors have free hand up to some extant in companies but have external audit to evaluate the functions.

Saudi Arabia has considered in those countries that have strong auditing system on base latest technology. Technology has changed the style of working and measurement of performance. The impact of internal auditing on companies performance can be seen in companies’ internal report. The internal income report of companies can be seen and it holds previous earning. For preventing the scam in companies attitude of employees are very important. The attitudes of employees were based on development. The manners of employees were also important for measuring the effectiveness. Gender also played vital role and it was important to know that how male management effectively deliver the performance. The nature of culture was also important to know that how it was important for these companies. Internal auditing hold link with performance and it was important for all the performing companies. The inquiry and investigation hold the strong effectiveness related to performance.

According to Alzeban & Gwilliam (2014), it was determined final issues in companies are more important and effective for determining the performance. Saudi Arabia developed a strong policy and hold for determining the performance. The effectiveness of internal auditors was unique and has strong influence. The effectiveness of internal audit is characteristic that hold perspective of growth. The economic revival of companies holds the uniqueness and development. Saudi Arabian companies supply the oil and major sector is construction. The data collected from companies were based on internal audit report (Alzeban Abdulaziz & Gwilliam David, 2014).

According to Gwilliam David (2014) determined that it was not easy for the companies to hold strong position market. The companies were holds the tight system of selling and purchasing. The sale and purchase of goods, items or products is done form various regions of world. Companies were running their business setup in various regions of world and delivering their products across the world by shipment. The gain and loss was part of business but internally it lead toward the fraud. The light checkup and slow process become one of the reasons to increase disruptive behavior internally and externally. The issues of performance with companies are related to the ground working condition. Companies have long struggle to come on that stage where now these thirty-nine companies were now leading in region.

According to Gwilliam David (2014) there are various kinds of factors that have strong influence on the performance of companies. It was determined that the major factors was that management was not professional trained to meet the new global challenges. Therefore, new management was hired form the various countries that have experience to run the large companies setup. One change that was introduced by the companies that local educated persons also trained under the supervision of these experienced managers. Now with the passage of time these persons have skilled and professional working experience. Auditing was one of the major field and that hits the company performance. Management learned from harsh and crisis situations and now performing in these companies. Management are running the large setup and delivering effectively. The companies hold the strong relationship with transferring the funds. Internal auditing create environment of internal responsibility. Responsibility was major concern with performance (Alzeban Abdulaziz & Gwilliam David, 2014).

According to Alzeban & Sawan (2013), governance played vital role progress and development of companies. Leadership holds vital role and considered the backbone of the companies. Leadership was involved in decision-making process and the delivering the market analysis. Governance controls the major issues internally and taken the decisions. The management also implemented the decisions taken internally. It was the major responsibility of the management to hold strongly and have deep knowledge to control the fraud. Internally audit in thirty-nine companies in Saudi Arabia make the management responsible for their actions. The actions taken internally and externally based on the behalf of management (Alzeban & Sawan, 2013).

According to Alzeban & Sawan (2013), with the advancement in ideas and technology, it becomes more important to have advance knowledge. The greater frequency of decisions making were improved the status of company in market. Internal auditing makes the responsibility of management that it should be done with great care. One of the major factor for doing the internal audit in companies as the auditors have the strong knowledge. It was determined that white color crime involves the neat and clean fraud in companies. Information and knowledge are both strong pillars to hold the tight and strong internal audit. Information related to financial matters holds strong expertise. The fraud done by the financial experts in companies of large setup can be exposed by hiring the external auditor. External auditors have strong knowledge and know where the financial managers make the fraud. It observed that on daily basis listen those financial frauds done by the managers in companies. Therefore, companies do not depend on the internal audit done by the financial managers.

The internal audit was affected by the managers, breaks the companies’ codes easily, and run their stealing business for company accounts. One of the major reasons is that companies do not capable of installing the new management system on time.  It was found that lack of necessary equipments in companies also become reason for stealing or fraud. The lack of latest equipment in companies mean have less chance to control the stealing conditions by managers and it was failing of internal system of company (Alzeban & Sawan, 2013).

According to Alzeban & Sawan (2013), the problem with internal audit was that management has not capacity to hold these scams. In Saudi Arabia, managers have less capacity to meet the global challenges in previous years and companies hired the staff from European and American. It was observed that companies have now using the local talent and making the strength of managers to cover all kind of issues. Now it was determined that thirty-nine companies were using the audit of GAB. Once these companies were going towards failure as the internal audit system and on other side, companies want to expand their business in all regions. It was observed that as Saudi companies hold their position in market and strengthen the internal audit system shareholders come. The shareholders also invested in these Saudi companies and become partners as companies were working effectively in regional and global market.

According to Alzeban & Sawan (2013), it was determined that previous model was not working well and then it was changed with the latest model. The changed model holds the strong auditing features and it was recommended by financial representative or called as financial controllers. The model was tested before installing in market mechanism and managers decide it was right or wrong. It has good features related to auditing and makes the auditing as strong function. Controllers have deep knowledge about the financial matters and it was easy to hold the scam and fraud related to finance. In public sector companies in Saudi Arabia, the roles of internal auditors have strong function in companies’ performance.

2.3 Direct Link with Performance of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

According to Endaya & Hanefah (2013), the measurement of internal audit was full with challenges. Internal auditing have a lot of problems and it was not easy to control all the influencing factors. It was observed that internal auditing has direct link with performance. Performance is directly associated with audit of company. Performance is determined that the selected companies have tight working condition. The effectiveness of internal audit can be determined as companies hired the experts as financial matters are very important. It was determined that the performance of management hit the balance sheet and income of companies. The crucial function of management was based on the smooth working of labor. Ignoring the internal audit was becoming more verse and handling the maters verse. Management of Saudi Companies knows the importance of internal audit and management deals on it on first priority (Endaya & Hanefah, 2013).

According to Endaya & Hanefah (2013), it determined that the aims and objectives of the Saudi companies are very clear. Companies want to hold the regional and international market and it can be only done when companies have clean audit system. Internal audit control the company conditions and it hold the strong working conditions. Internal audit has strong impacts on management and it was a serious problem. The advantage of internal audit was that it helps in running the smooth working. Companies work daily and deal the assignments of products. The significant impacts on companies were that Saudi government holds the strict laws related to fraud. It builds the strong position of company in market and company may hold or get top position in regional market. The major thing was the company’s products and products mean a lot of movement of goods or items. Products sale and purchased on higher level and management control the system.

 According to Endaya & Hanefah (2013), it was determined that communication played important role for increasing the performance. The impacts of internal audit on performance have strong impacts. It was clear that communication hold the strong position in companies. The products were delivered on time and recovery of payment was very important. The management have clear vision and it was followed the aims or objectives of company leadership. Communication is the key to handle the issues and problems internally. Management hold the important position in companies and it has deep knowledge especially related to financial management. Internally management controls all the issues and focus on resolving the problems. It was determined that technical competence needed the essential support. Internal auditing has essential requirements for effective measuring of financial problems. The sufficiency of internal audit was important to tackle the issues or problems as management was more concerned about the training programs (Endaya & Hanefah, 2013).

2.4 Practicing Illegal Activities of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

According to Arena & Jeppesen (2016), it determined that with the variation in internal audit report it has impacts on the performance. Its mean that management and labor performance both. Management is like engine of train and as it was clean perform the works also works with full potential. As the management is involved in corrupt practices it has bad impacts on the labor. In public sector companies in Saudi Arabia, management are directly involved in corrupt practices its mean that company higher level practicing illegal activities. The workers or labor of companies notice the illegal practice they also involved in corrupt practice. This mean that corruption diverts the real intention of management and production loses. Company soon or lately on its last stage and become bankruptcy. The values or beliefs highlight the importance of the performance. Performance was retained or gained with the help of management. The social responsibility of management is to handle the negative impacts and release the tension of management. Professional attitude include the major parts of management.

According to Arena & Jeppesen (2016), it was determined that attitude included in that things that have strong impacts on companies performance. The behavior of management belongs to companies and it handles the biggest issues or problems. Management controls the practice variation and highlights the environment. The environment play vital role for control or measuring the level of performance. Management develops the strategies and plans for working internally and externally. Professionally managers make themselves responsible for loss and gain. Companies want professional dominance and avoid any kind of ambiguity in companies. The operational activities of companies reveal their performance as on time delivery of goods or material shows it performance. The cover the short fall and meet with the dead lines in short time is the real goals of management. To become more powerful and leading in region need more efforts and need full attention. Financial accounting need the extra ordinary skills and professionally attitude. Auditors create the good image of company and make them a smart or famous brand in world. Auditors remain in offices but hold the important position and can change the game of ruling in regional and international market (Arena & Jeppesen, 2016).

According to Razi & Madani (2013), it determined that information technology has played important role in managing the various matters in industry. It was determined that management need to advance skills and technical knowledge to lead in market. Information technology and used of advance software’s in auditing and financial matters become important. Saudi companies were using accounting management applications, market analysis software’s and practicing the modern variation factors. Corporate governance is facing the issues and news becoming hot with capturing the fraud by top management by using the financial software’s. IT applications in internal auditing save the management form error, fault, or failure. IT developed the trusted and reliable application for internal auditing as it has both positive and negative impacts on performance (Razi & Madani, 2013).

By Rendering to the research by Su, Lee, Tsai and Lu the basic purpose of this writing is to know the view of the of the bankers of Malaysia about the impact of the several techniques or methods and fraud prevention on the Islamic bank of Malaysia. Researchers distribute the 148 questioner in the Islamic banks of Malaysia to their staff including officers and managers to find out their perceptions about this study. According to the findings of this questionnaire the application and software used by Malaysia banks to prevent the risk of fraud are proved to be more effective and operative. In the intervening time the most effective techniques for preventing the fraud when evaluating independency are considered as the protection of the password, bank settlement and reconciliation and the inside analysis and improvement. Hopefully this research will be proving advantageous for the participators to know and understand the value effectiveness of currently using techniques of to secure the bank of Malaysia from threat of fraud.

To check the improvement and optimization of government operations the government examining tem has elaborate by itself to check out economy, legitimacy, effectiveness and efficiency of how the numerous branches of administrative are consuming their assigned resources. It is to be noted that potentials and abilities of experience and usefulness of the auditors have great influence on their performance. The researchers held a survey in Taiwan among the 50 % of all government auditors to endorse some practical factors to auditors to increase their performance and to develop more appreciative about the factors which give strength and enhance the performance of audit authorities. The findings indicate that professional responsiveness, skills, abilities and attained knowledge of auditing has greatly influenced by the experience of any professional audit and it results as to increase the abilities effectiveness of the audit professional judgment. We also noticed that problem solving capabilities perceived skills the involvement of resources also has great influence on their performance. The aim of this writing is to recommend several managing strategies and guidelines to the audit authorities of the Taiwan to improve their abilities and efficiency.

Under the strong upsurge of globalization, deviations are supplemented by advance technological inventions, pecuniary liberalization and growing responsiveness of an active nationality, all of which in turn bring about incredible experiments challenges to the Taiwan government in many forefronts such as economic growth, governmental reform, social welfare, anti-corruption, tax revenues, pension plans and insurance. These issues and challenges are really influenced for polices and strategies of the government, for the events of international level or for the consistency of economy. The service provided by the auditor’s authorities is not only reflected and impacted by the functions of government, the perception of the citizens of Taiwan about government and the executive branches has also deep impact on auditors. To raise the value of resources the performance of auditor is a great way to increase it by their dedication it will also beneficial for the growth of economy (Su, Lee, Tsai, & Lu., 2016).

2.5 Internal Auditing Legality and Regulation of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

In the recent time the government of Taiwan has started paying attention more on legality and economic regulation of the financial operative and competent performance of auditing so government is showing more concerned with it as it is complicated, tricky and complex comparably. To certify the progression in a fast moving work environment is the reason behind to highlighting and promoting the network of development, it also enables the Taiwan government to maintain a mentor system. To maintain the mentor system of great quality the government has used the strategy of mutual learning. As by mutual learning the people can raise their skills and abilities by sharing information and experience it also increase the enthusiasm, knowledge and connections.

In the audit of the branches, it is noticed that there is more uncertainty of the structure, which is not good. Moreover, most of the studies show that the reason behind it is the much stress in environment of working which cause workforces loss by understand this factor it is necessary to sort it out as these factors has negative impact on the performance of the employees which automatically result as the loss of organization. To sustain the employees for long term organizations should introduce some alluring and attractive future look and also enhance the learning opportunities to retain them. 

Inclusively the result of study is that the performance of audits is highly influenced by the self – efficiency. To improve the performance and skills of employees the employers should make strategies to improve the self-efficacy of the employees it will be advantageous for both the employees and corporations’ performance. By helping the each other to fulfill the objectives and aims will be prove vindicated for them. Organization can held the motivation and consoling lectures, announce the rewards for good performance to improve the self-efficacy of employees. By the proper guideline training, understand them to learn challenges and by leading the development activities organization can boost and motivate the employees to increase their work efficiency.  According to the survey to develop the internal network corporations the employers should arrange the meetings to discuss and share the information and experience regarding to company and should ask by employees to give create ideas to make further strategies.

To improve the quality of employees they should also provide platform for knowledge sharing and educational training. Organization should understand the employees that they are playing primary role in company so they are important to them. Make them believe that if they will be dedicating with their organization will lead towards success  and as a result they will also get advantage as their facilities, salary and rank also increased by knowing that work environment is favorable for them they will definitely enhance their performance because of satisfying mind. When an employee feels that they have resources and indecency and future securement they will show their full potential (Su, Lee, Tsai, & Lu., 2016).

To lower the auditors morale is not at all so to ignore it we have not write numerous factors for example to maintain balance of the audit reports, value back to state fund, number of employees who are admonished,  or some other endorsements. To measure and quantify the position of audits is somehow challenging therefore we recommend further study using alternate methods to define and quantify their performance and to legalize and elaborate our research (Su, Lee, Tsai, & Lu., 2016).

2.6 Auditors as government respondents of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

By conferring the research 2014 by Goh, Cousins, Elliot, Gilbert and Aubry there are better analysis the advantages of the internal auditing despite the fact that several independent educational institutes like universities, some public agencies and other private sectors are also dedicating to contribute with the government of the state. In the evaluation, this operation is characteristically run by the team of government for evaluation internally, auditing assistances and by the contractors control and employed by government for evaluation. The units for evaluation are rapidly increasing in the numbers by the governments of worldwide hence for hence the evaluation of the government structure is supportive and cradle. Furthermore in this research it is also clarify that regardless of the corporation’s good intension of developing the units for internal evaluation, they raise the threat of own selves to be locked down except there is huge demand and value the quality internal evaluation.

In the same way with similar from similar difficulties the Canada and United States are going through as the internal units of evaluation of Australia are specially placed at the public sectors therefore they are also facing the problem recurrently lack of the skills for evaluation, lack of employees and shortage of required resources. In the age of 1990s, the auditors and units of evaluation were minus distinct as compare to now in Canada due to the operation from administrative of government in federal departments with 50% audits and the unit of evaluation in a merged unit.

The auditors of the organization have stated that the government respondents sector had shown less dedication to rate their corporation as compare to the other corporations according to the commitment to ECB (Cousins, Goh, Elliott, Aubry, & Gilbert, 2014).

According to the research held in the 2014 by the Lubbe and Coetzee on the very prominent issue internal auditing according to this writing the character which is played by the auditors and internal auditing help to diminish the factors that can be risk for corporation they have minimized it but not least. This purpose of this writing is to explain the development and expansion of the model that can be proved helpful for the auditors of internal units to perform their challenges and duty with success. To the development of this model the writing and research have been taken from academic literature, norms and values and the practice of current business and several other papers was used. After it was verified and tested by a specific scenario and the result was prominent from the head of corporation of internal audit from corporations of South Africa. The outcome of the research which is inter alia gives the positive view in the support of model. On the other hand it is notified that the strategies and policies which are currently using by the corporations to manage the risk factors in the internal auditing department are not strong enough to rely on them so there is requirement for the model to generate the operation of organizations significantly.

In the testifying of model for risk management of internal audit by using the method of the model the internal audit engagement was re – performed which had been executed also before. The outcome of the practical was in the favor of model as it ensures to increase the efficacy and performance of the employees. It is to be stated that with the use of model less number of audits will be used but more findings will covered (Coetzee & Lubbe, 2014).

According to a research held in 2014 by Nickell and Roberts they lay stress on the examination of the ethics and the operations of performed by internal audit in a business corporation. Tremblay and Everett have been explain the way which is used by the internal auditors by probing the employees liked to clinch a moral vague, if not disputed.  They organized profound interviews and examine the autobiography of the institute selected by them named as IIA institute of Internal Auditors. There is an article to examine the role of the operations done by internal audits and to further discover the internal audit and ethics. The organized model of hypocrisy confronts the rational model of decision-making. The auditors, which are fulfilling the task internally, are considered to work in weak sovereignty. The internal auditors are answerable towards the management of the organization. So, this rule makes the culture and moral of auditors weakens (Nickell & Roberts, 2014).

References  of the Impact on Internal Auditing on the Performance of Governmental Organizations in Saudi Arabia

Al-Janadi, Y., Rahman, R. A., & Omar, N. H. (2013). Corporate governance mechanisms and voluntary disclosure in Saudi Arabia. Research Journal of Finance and Accounting, 4(4), 1-10.

Alzeban Abdulaziz & Gwilliam David. (2014). Factors affecting the internal audit effectiveness A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation, 23(2), 74-86.

Alzeban, A., & Sawan, N. (2013). The role of internal audit function in the public sector context in Saudi Arabia. African Journal of Business Management, 7(6), 443-454.

Arena, M., & Jeppesen, K. K. (2016). Practice variation in public sector internal auditing: an institutional analysis. European Accounting Review, 25(2), 319-345.

Badara, M. S., & Saidin, S. Z. (2013). The relationship between audit experience and internal audit effectiveness in the public sector organizations. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(3), 329-339.

Coetzee, P., & Lubbe, D. (2014). Improving the efficiency and effectiveness of risk‐based internal audit engagements. International Journal of Auditing, 18(2), 115-125.

Cousins, J. B., Goh, S. C., Elliott, C., Aubry, T., & Gilbert, N. (2014). Government and voluntary sector differences in organizational capacity to do and use evaluation. Evaluation and Program Planning, 44(1), 1-13.

Endaya, K. A., & Hanefah, M. M. (2013). Internal audit effectiveness: An approach proposition to develop the theoretical framework. Research Journal of Finance and Accounting, 4(10), 92-102.

Nickell, E. B., & Roberts, R. W. (2014). Organizational legitimacy, conflict, and hypocrisy: An alternative view of the role of internal auditing. Critical Perspectives on Accounting, 25(3), 217-221.

Razi, M. A., & Madani, H. H. (2013). An analysis of attributes that impact adoption of audit software: An empirical study in Saudi Arabia. International Journal of Accounting & Information Management, 21(2), 170-188.

Su, J.-M., Lee, S.-C., Tsai, S.-B., & Lu., T.-L. (2016). A comprehensive survey of the relationship between self-efficacy and performance for the governmental auditors. SpringerPlus, 5(1), 508.