Enhancing Esg Risk Governance In Universities: The Role Of In-ternal Auditors And The Iia Three Lines Model—A Pls-Sem Ap-proach

Gihan Taha Khalil Essa

doi:10.29284/shdfp758

Authors

Gihan Taha Khalil Essa Department of Accounting, Faculty of Business Administration, University of Tabuk, Saudi Ara-bia

DOI:

https://doi.org/10.29284/shdfp758

Keywords:

Internal Audit; Environmental; Social; and Governance (ESG); IIA Three Lines Model; ESG Reporting; Governance; Sustainability Compliance

Abstract

This research aims to analyze the role of internal audits and the application of the Institute of Internal Auditors’ (IIA) Three Lines Model on the efficacy of Environmental, Social, and Governance (ESG) risk governance in universities. As the global focus on ESG integration in higher education intensifies, Saudi universities face challenges in assessing ESG risks and ensuring accurate reporting. This study utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore the connections among (1) the application of the IIA Three Lines Model, (2) the collaboration between internal auditors and risk committees, and (3) the quality of ESG governance, with internal audit effectiveness as a mediating variable. The results indicate that collaboration with risk committees has a significant impact on environmental, social, and governance (ESG) governance. Additionally, the Three Lines Model strengthens the internal audit function, leading to an improvement in the quality of ESG reports. The research provides valuable theoretical perspectives on ESG risk governance frameworks and presents actionable suggestions to enhance ESG transparency, in line with the objectives of Saudi Vision 2030. The paper introduces a validated ESG risk matrix along with an adjusted structural model aimed at facilitating future institutional enhancements.

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