Accountability and Audit in the Saudi Arabian Government Sector

The Kingdom of Saudi Arabia was founded in 1932 by King Abdul Aziz who led the people of Arabia from a state of nomadism and tribal rivalry to a settled agricultural community, relatively poor but with a sense of citizenship. Less than fifty years later oil has made this nation one of the richest in the world, with a strong sense of urgency to use those riches wisely, but with a severe shortage of skilled manpower. This thesis is a study of the system of accountability and audit in the government sector of Saudi Arabia to-day. The analysis shows that the system is not able to meet the demands made upon it. A scheme for reform is suggested, drawing upon a comparative study of Anglo-American experience of control of "big government", but taking account also of the unique Saudi situation. In Chapter I, the system of government and administration in Saudi Arabia is outlined. In Chapter II, the regulations governing financial control and auditing in the Saudi government sector are studied in more detail. In Chapter III, evidence is reviewed relating to. how this financial control system works in practice; sources include the writer's own experience as an auditor and financial manager, the annual report of the General Auditing Bureau, some correspondence between the General Auditing Bureau and the writer, as a financial manager, and a questionnaire answered by 4+3 respondents, (auditors, financial comptrollers, financial managers, chief accountants) and interviewing © government officials. Chapter IV, is a comparative study, especially of Anglo American systems, and a consideration of their relevance to the Saudi, situation. Chapter V draws out the weaknesses of the present Saudi system and suggests a programme of improvement; the key factor in this is the breaking of. the "vicious circle" of lack of time and of skilled personnel to improve systems because they are overworked operating existing cumbersome and ineffective systems.