Evaluate the conditions and contributors affecting corruption and fraud in Saudi Arabian public enterprise. Further identify those factors preventing more rigid control measures and assesses the viability of formalized audit and control standards for mitigating future incidences of corruption.

In the 1970s, British Ambassador Willie Morris recounted that the oil fortune in Saudi Arabia had ‘led to a corruption of character’, whereby government agents maintained a ‘corrupt interest in all contracts’, resulting in a system which ‘is at best an infernal nuisance and potentially explosive’ (Leigh & Evans, 2011).  In spite of decades of history, development, and governance, a recent report by the Al-Hayat newspaper indicated that more than 500 cases of corruption had been recorded in Saudi Arabia between 2012 and 2013, with more than 92% of Saudi nationals indicating the nepotism was the direct cause of domestic corruption (Press TV, 2014). Further, Khatib (2011) and Sullivan (2013) report that in spite of increasing oil revenues and Saudi wealth, poverty affecting between 2 and 4 million of Saudi citizens has taken a significant toll on public welfare. Following government reforms and publicized efforts to quell corruption and anti-competitive activities, particularly since the 2011 Arab Spring uprising, statistical indicators suggest that corruption remains prevalent and impactful.  With no singular solution identified for this problem, there is a need for more robust and targeted auditing and control techniques. The current study seeks to critically evaluate means and mechanisms that could be used to inhibit the effects of corruption, focusing on a diversified spectrum of auditing and control techniques that are increasingly implemented throughout the broader global community.

Prior investigation indicated a continued and increasing level of corruption prevalence and its impact on economic, political, and social sectors in Saudi Arabia. There is a need to emphasize on a critical and system-based assessment of potential reform measures within the Saudi Arabian public sector.  Thus, this research aims to critically evaluate the conditions and contributors affecting corruption and fraud in Saudi Arabian public enterprise. Further identify those factors preventing more rigid control measures and assesses the viability of formalized audit and control standards for mitigating future incidences of corruption.