The Extent of the Suitability of International Standards and Guidelines for Auditing the Environmental Activities of Libyan Industrial Companies

Abstract

This study aims to determine the suitability of international standards and guidelines for auditing the environmental activities of industrial companies operating in Libya. Given the increasing damage caused by industrial activities, the auditor's role in ensuring companies' compliance with their environmental responsibilities becomes crucial. Due to the absence of local standards regulating environmental auditing, the study focused on International Publication Statement No. 1010 issued by the International Federation of Accountants (IFAC). A descriptive-analytical approach was employed, and the sample consisted of external auditors. The findings indicate that the international standards and guidelines derived from Statement No. 1010 are suitable for application in Libya, particularly regarding the study of the nature of operations of entities with environmental impact, the assessment of environmental risks, the auditing of environmental obligations, and compliance with environmental laws and regulations. The study also highlights the possibility of engaging experts and requesting management declarations regarding environmental responsibilities. The study recommends the activation of environmental laws, the issuance or adoption of local standards for environmental auditing, the promotion of environmental awareness through training courses, and the inclusion of environmental accounting and auditing courses in educational programs. It also emphasizes the importance of supporting audit firms with environmental experts when auditing economic entities with environmental impact