Abstract

Practitioners argue that audit committee effectiveness is improved when committee members have industry expertise, yet the focus by regulators and researchers to date has been on the contribution made by members with accounting and auditing expertise. This study examines whether internal audit characteristics is indeed greater when audit committee members have industry expertise combined with auditing expertise. Data from a survey of 64 chief internal auditors from companies registered on the Saudi Stock Exchange TADAWL, provides results that suggest that when audit committee members possess both industry expertise and auditing expertise, the committee’s role in improving the quality of internal audit is enhanced. This outcome is concluded as one that can be generalised beyond the Saudi Arabian context.

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