Strong governance and effective risk oversight are no longer optional. Under Saudi Vision 2030 and evolving regulatory expectations, boards and executive leadership teams are expected to demonstrate transparency, accountability and disciplined control over financial reporting, risk exposure and compliance obligations.

BDO Saudi Arabia provides Governance, Risk and Compliance (GRC) advisory services that help organisations strengthen governance structures, enhance risk management frameworks and improve the effectiveness of internal controls in line with stakeholder and regulatory expectations.

With more than 45 years of presence in the Kingdom and over 500 professionals across industries, BDO Saudi Arabia combines deep local insight with international standards to support medium and large organisations, as well as government and semi-government entities.

Governance and Audit Committee Oversight

Audit Committees play a central role in protecting the integrity of financial reporting and supporting board oversight. Their responsibilities typically extend beyond the review of financial statements to include the effectiveness of internal controls, whistleblowing arrangements, audit effectiveness and broader risk governance. In many organisations, governance matters are increasingly delegated by boards to subcommittees, making the effectiveness of Audit Committee oversight a critical component of overall governance.

For listed companies, Audit Committees are expected to report to shareholders through the annual report. For unlisted organisations, an Audit Committee can support best-practice governance and enhance oversight over financial and risk matters.

Role of the Audit Committee

• Risk management and internal control environment
• Whistleblowing policies and procedures
• Financial reporting
• Appointment of external auditors
• Audit effectiveness

Audit Committee Structure

For a listed company, the committee is typically expected to include at least three independent Non-Executive Directors (NEDs). For smaller listed companies, this requirement may reduce to two. The company Chairman may be a member, but should not serve as Chair of the Audit Committee, provided independence criteria are met. As a general principle, the size and composition of the Audit Committee should be appropriate to the complexity of the business and the risks it faces.

The role of the Audit Committee Chair is critical in setting the agenda, planning the work of the committee and enabling frank and constructive discussion. Effective chairing supports better oversight, clearer decision-making and stronger accountability across governance and control matters.

Our Governance, Risk and Compliance Advisory Services

BDO Saudi Arabia supports boards, Audit Committees and executive management teams in building governance maturity, strengthening risk oversight and enhancing compliance and internal control frameworks. Our advisory services are designed to be practical, implementable and aligned with organisational priorities.

• Governance framework reviews and enhancement
• Audit Committee effectiveness reviews and support
• Risk management framework design, review and implementation support
• Internal control assessment and improvement programmes
• Whistleblowing framework design and review
• Regulatory compliance gap assessments and remediation support
• Policy and procedure framework development and optimisation
• Board and committee reporting and governance documentation support

When Should You Seek Governance, Risk and Compliance Support?

• Strengthening board oversight and governance accountability
• Establishing, restructuring or improving Audit Committee performance
• Responding to internal audit findings or external audit observations
• Enhancing risk governance and internal control effectiveness
• Preparing for regulatory review, stakeholder scrutiny or increased disclosure expectations
• Supporting organisational growth, restructuring or major investment decisions

Our Approach

Our approach combines structured assessment, practical advisory and implementation-focused support. We work closely with boards and leadership teams to clarify governance priorities, strengthen accountability, and embed effective controls that support transparent reporting and disciplined risk management.

By improving governance structures and strengthening risk and compliance capabilities, organisations can increase stakeholder confidence, reduce exposure and support sustainable growth in Saudi Arabia’s evolving regulatory and business environment.

Contact Our Governance, Risk and Compliance Team

To discuss how BDO Saudi Arabia can support your organisation with governance enhancement, risk oversight and compliance effectiveness, please contact our advisory team to submit a request for proposal.