Internal Auditing and Risk Management: A Strategic Partnership in the Moroccan Hospitality Industry

Harbal Nesrine () and Daafi Radouane ()
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Harbal Nesrine: Hassan II University, LIFGOD, ENCG
Daafi Radouane: Hassan II University, LIFGOD, ENCG

A chapter in Proceedings of the International Conference on Multidisciplinary Research in Management and Economics (ICMRME 2025), 2025, pp 142-164 from Springer

Abstract: Abstract This study examines the crucial role of internal audit and risk management in ensuring financial integrity, operational efficiency, and regulatory compliance in Moroccan hospitality industry. Based on data collected from 37 hotels, it highlights the strong connection between auditing mechanisms and risk governance. Findings show that hotels with strong internal control structures, aligned with COSO II standards and advanced technologies, are more effective in detecting and mitigating financial fraud. In contrast, resource-limited hotels struggle with fragmented governance, low digitalization, and higher risk tolerance, making them more vulnerable to financial misconduct. Beyond technology, leadership engagement and a risk-aware organizational culture play a key role in effective oversight. Hotels where senior management actively supports audits and promotes risk awareness exhibit stronger fraud prevention and compliance. Conversely, infrequent audits, especially in smaller hotels, create gaps that increase vulnerability to fraud and operational issues. The study advocates for a technology-driven, integrated risk management approach, supported by formal internal controls, regular audits, and continuous staff training. This strategy enhances transparency, trust, and sustainable growth in a highly competitive hospitality industry.

Keywords: Internal Audit; Risk Management; Hospitality; Governance; Organizational Culture Introduction (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-892-9_10

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