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Evaluation of the performance of the internal audit function in Libyan banks: A study on Libyan commercial banks.

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  • Ali Abdoullah Omar Ikryim,
  • Prof. Emna Boumedien
Ali Abdoullah Omar Ikryim
PhD student at Manouba University Higher Institute of Accounting and Business Administration, Manouba University
Prof. Emna Boumedien
Higher Education Professor at Manouba University Higher Institute of Accounting and Business Administration, Manouba University
Published in : International Journal of Scientific Research and Management (IJSRM) , Vol. 11 No. 12 (2023)

Submission to VIJ 2023-12-02

Keywords

  • Internal audit performance evaluation, Libyan banks, Independence, Effectiveness of internal auditing.

Copyright (c) 2023 Ali Abdoullah Omar Ikryim, Prof. Emna Boumedien

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study aimed to evaluate the performance of the internal audit function in Libyan banks and to explore the role of demographic information in determining this evaluation. It provides an insightful look into the performance and this relationship through the opinions of the respondents. The study utilized a quantitative descriptive-analytical approach to collect data and answer the posed questions. The study population consisted of employees in the Libyan commercial banking sector. The study distributed 350 questionnaires to Libyan banks, and after about three weeks, 345 were collected, of which 333 were valid for analysis. Survey results indicated that respondents largely agreed that the performance of the internal audit function was high, as most scores were rated high. However, there were some items that respondents indicated as average, meaning they did not agree with their content. Hence, it should be noted that internal auditing should provide recommendations to improve the internal control system when necessary, tables of committee meeting agendas and related key information should be circulated before meetings, and the audit committee should monitor the selection of accounting policies and principles. The study also revealed that there was no statistically significant effect of demographic information on the evaluation of the performance of the internal auditor, with the exception of the age variable. Thus, the study recommends addressing the challenges faced in adopting the International Financial Reporting Standards (IFRS) by providing a high-quality set of internationally recognized accounting standards that achieve transparency, accountability, and efficiency for financial markets worldwide.

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