| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 22 |
NO. 2 |
PAPER 3 |
DOI: 10.34293/2321-2012.2026.0002.3 |
ENHANCING PROFITABILITY THROUGH INTERNAL AUDIT QUALITY:A SURVEY-BASED STUDY OF THE RETAIL SECTOR IN SAUDI ARABIA |
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| Abdullah Masood* |
* College of Business Administration, Northern Border University, Arar, Saudi Arabia
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| This study explores the impact of internal audit quality on enhancing corporate profitability and examines the applicability of this principle within the retail area in the Kingdom of Saudi Arabia, amidst increasing challenges and hasty deviations in the business location. A ground study was conducted on 252 internal auditors, working in retail area companies, in the Kingdom of Saudi Arabia. Data were collected through a purpose-based questionnaire and analyzed by using a descriptive-analytical approach. The study revealed positive and statistically significant relationship between the application of high-quality internal auditing and the increased profitability of retail sector companies in Saudi Arabia. The study was limited to a sample of internal auditors within the retail sector and the findings may not be generalizable to other sectors. Further, reliance on questionnaires introduces the potential for response bias. The findings revealed the vital role of internal audit quality in achieving financial success. The study recommends that retail companies in Saudi Arabia should provide necessary administrative, professional, and financial support to auditors, and enhance the quality of audit processes and their ability to contribute to increased corporate profits. |
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