Internal Auditing in Urban Development: A Case Study of the Egyptian Public Sector

This study examines the role of internal auditing in urban development within the Egyptian public sector, emphasising its contribution to governance and accountability in state-led projects. The research introduces a state-centric participatory audit approach tailored for urban development governance, diverging from traditional corporate-focused models by integrating institutional alignment and public sector accountability mechanisms. Unlike existing participatory audit frameworks, this model emphasises cross-agency coordination and sustainability governance within the Egyptian public sector, addressing gaps in oversight and collaborative planning. Findings reveal that internal auditing serves as a critical mechanism for aligning institutional objectives, enhancing transparency, and fostering participatory governance in urban development initiatives. Furthermore, the study advances institutional alignment through enterprise resource planning (ERP)-enabled participatory auditing, offering a governance-oriented framework for sustainability oversight in the public sector. Practically, the findings provide actionable guidance for public sector managers on embedding sustainability key performance indicators (KPIs) into audit processes and leveraging ERP systems for real-time monitoring and assurance reporting. From a policy perspective, the study informs regulatory reforms and governance strategies aimed at institutionalising accountability and participatory oversight in large-scale urban development projects. These insights offer practical implications for policymakers and practitioners seeking to strengthen accountability and sustainability in public sector development programs.