Internal Auditing and Financial Reporting Quality in Saudi Non-Profit Organizations: Evidence from an Exploratory Qualitative Study

This study examines practitioners' perceptions of the contribution of internal auditing to financial reporting quality in Saudi non-profit organizations. An exploratory qualitative design was adopted, using semi-structured interviews with five purposively selected experts and practitioners. The interview data were analyzed thematically and organized into six themes covering financial reporting quality, compliance and organizational improvement, organizational acceptance, auditor competencies, internal audit maturity, and organizational support and independence. Participants associated effective internal auditing with clearer financial classifications, improved reporting arrangements, stronger compliance, and greater organizational accountability. They also emphasized the importance of professional competence, constructive interdepartmental relationships, governing-body support, and meaningful empowerment. Assessments of internal audit maturity differed, ranging from perceived progress to concerns about limited adoption and implementation primarily intended to satisfy supervisory requirements. These findings reflect professional perceptions and reported experiences rather than independently verified changes in financial statements or causal effects. The study contributes context-specific exploratory evidence and identifies practical considerations for strengthening internal auditing, while recognizing the limits of a small purposive sample.