The impact of modern internal audit practices on the effectiveness of accounting systems in Libyan banks: a field study of commercial banks operating in the cities of Zawiya and Surman

Abstract

This study aimed to examine the impact of modern internal audit activities on the efficiency of accounting systems in commercial banks operating in the cities of Zawiya and Surman. A questionnaire was distributed to a sample of banks (Al-Jumhouria, National Commercial, Al-Wahda, Al-Yaqeen, and Al-Sahara). This questionnaire focused on two variables: the independent variable (modern internal audit activities) and the dependent variable (efficiency of accounting systems). Forty-five (45) questionnaires underwent appropriate statistical analysis to achieve the study's objectives. The study concludes that modern internal audit activities, through their various dimensions (bank governance, bank risk management, advisory services, and added value), influence the efficiency of accounting systems. Therefore, the study recommends developing audit charters and expanding their proactive powers to assess digital risks and ensure compliance with central bank regulations. It also recommends institutionalizing their advisory role in the implementation of IFRS standards and the monitoring of bank reconciliations to improve the reliability of the accounting system.