This study investigates whether internal auditors in Libyan oil companies possess the necessary competence and capabilities in the security of electronic accounting information systems within an era of transition from manual auditing to electronic accounting information system auditing. The study also examines the issue of whether internal auditors implement sufficient safeguards to address the risks associated with electronic accounting information systems. A questionnaire survey adopted for data collection revealed that: internal auditors in the sampled companies possess a high level of competence and efficiency in electronic accounting information system security; and that they also follow all protective measures to counter the risks of electronic accounting information systems. However, descriptive statistics show that the mean scores of participants' responses regarding the competence and efficiency of internal auditors in electronic accounting information system security were lower than the overall mean of the axis. This could be seen as a deficiency on the part of internal auditors in reviewing risks related to electronic accounting information systems, monitoring management's implementation of regular maintenance of electronic systems, ensuring the existence of sufficient protection programs to scan electronic programs or magnetic disks, implementing procedures to limit risks arising from electronic equipment damage, and periodically evaluating information security applications within the company. Descriptive statistics also indicate that the average scores of participants' responses regarding internal auditors' adherence to all protective measures to counter the risks of electronic accounting information systems were lower than the overall mean of the axis. This could be seen as a deficiency on the part of internal auditors in monitoring IT staff in implementing required security measures, participating in updating security methods according to changes in the evolving IT environment, participating in developing specific security policies such as selecting the appropriate technology and its effectiveness, participating in developing and formulating a strategy for developing the security of electronic accounting information systems, and contributing to the detection of security breaches through reports and describing the type of breach

The paper assessing the nature of corporate accounting regulation in developing countries in general and in Libya in particular. It examines IASs/IFRSs adaption in these countries

Examining what has led Libya to adopt international accounting standards (IASs)

The development of accounting profession and auditing in developed

countries have received considerable attention in the accounting literature.

However, the accounting profession and auditing in developing countries have

been neglected. Therefore, this study critically evaluates the development of the

accounting profession in the developing country context, specifically in Libya.

This paper sheds light on the phases of accounting development in Libya, taking

into account some factors that affect the accounting practice in the country. These

factors include: the Libyan economy; Libyan culture; foreign investment; Big 4

auditors in the country; compliance to the Global Accounting Standards (e.g.

IASs, ISA and IFRS) and Libya’s application to WTO.

This chapter aims, to highlight a review of IAS history, followed by approaches of accounting regulations. The development of accounting regulation within developing countries is also highlighted and discussed in the context of cultural diversity. It also aims to shed light into the motives that drive the adoption and implementation of IASs/IFRS. The political nature of lobbying and accounting standards setting process is also discussed in this chapter. In addition, the chapter discusses those factors that may be perceived as challenges which may delay or even block the convergence into the IASs/IFRS. Finally the authors provide key remarks about the IASs and venues for future research

The paper examines the factors that may be considered as challenges or difficulties facing the implementation of the international accounting standards (IASs) and international financial reporting standards (IFRSs) by Libyan companies listed on the Libyan Stock Market (LSM).

This study examines the factors that may be considered as challenges or difficulties facing the implementation of the International Accounting Standards (IASs), and International Financial Reporting Standards (IFRS), by Libyan companies listed on the Libyan Stock Market (LSM). A qualitative approach was employed using semi-structured interviews to collect data. The results reveal that most listed companies prepare their financial statements taking into account the existing laws and the financial regulations, such as the Tax Law, and Libyan Commercial Law, prior to the GAAP with which they comply. The study also finds that the challenges facing the IASs/IFRS implementation in the preparation of listed companies’ financial reports include the following: 1) most listed companies do not offer training programmes, and those that do have only weak provision in this respect, 2) accountants lack adequate skills, awareness and capabilities in implementing IASs/IFRS, 3) accounting education curricula do not include the IASs/IFRS on their syllabus, 4) the vast majority of participants are unable to use the English language in preparing accounts, 5) there is an absence of enforcement from the LSM and external auditors, and 6) the LSM governance mechanisms are weak

Auditor independence has received considerable attention in recent

years. This is due to the fact that independently audited financial statements

may result in the generation of true and fair accounting information which will

help stakeholders to form rational expectations about firms and minimise the

agency cost. It can also be argued that lack of independence would lead

auditors to collaborate with the management of firms and would produce

misleading accounting information. Accepting this premise, this study explores

the effects of 12 different variables on the perceptions of auditor independence

in Libya. A sample of five user groups namely; owners, investors, lenders,

managers and auditors were chosen for the survey. The results suggest that all

user groups regard auditor independence as an important factor in forming their

decisions about firms. Amongst other variables, the non-availability of auditing

standards in Libya is found to be the strongest factor which undermines auditor

independence in Libya

Auditor independence is an important issue which has received considerable attention

since the collapse of Enron, WorldCom and Sunbeam in 2002 and Lehman Brothers

in 2008 in the USA; Bank of Credit and Commerce International in 1991; One.Tel in

Australia in 2001; and Sat yam in India in 2009. In the corporate world, the

importance of this topic comes from the fact that independently-audited financial

statements may result in the generation of true and fair accounting information which

will enable and assist stakeholders to form rational expectations about firms. It will

also result in minimising the agency cost and mitigating the agency problem

(asymmetric information between principals and agents due to remoteness gap). Thus

auditors are expected to monitor the agency relationship as outlined by the agency

theory. However, a lack of independence would lead auditors, who audit financial

statements, to collaborate with firms' managers who prepare these financial

statements. Consequently reliability of these audited financial statements would be

threatened.

Financial statements assist investors in making rational financial decisions if they are

reliable. The reliability of audited financial statements is based, in part, on the nature

and quality of an independent audit. The review of the relevant literature reports

mixed results. It also suggests that the bulk of research is conducted within developed

countries, while little effort is directed to developing countries. This study, therefore,

examines the effects of eight variables which may impact on the independence of

auditors and consequently affect the reliability of financial statements. These

variables include: audit firm size, audit fee size, audit tenure, audit committee, non-

audit services, competition, legal incentives and socio-cultural relationships. 400

questionnaires were distributed to 5 groups which included owners, investors, lenders,

managers and auditors in Libya as a typical developing country. Semi-structured

interviews including 16 respondents were also conducted to complement and enhance

the questionnaire survey results.

The results reveal that users consider auditor independence as an important ground for

reliable financial statements on which they base their decisions. These results

highlight the fact that amongst other variables, the non-availability of auditing

standards in Libya is one of the strongest influences undermining auditor

independence. The results also suggest that across the sub-groups in the sample there

are differences in the relative importance of the variables under study. In addition,

nonparametric tests reveal that these factors have significant impact on the perceived

reliability of audited financial statements. Furthermore, Factor Analysis illustrates the

interrelationship between all variables under investigation. More specifically, the

results suggest that economic, regulatory and country-specific-culture have an impact

on the auditor's independence and the perceived reliability of audited financial

statements.

These results would be useful input for LAAA in developing the accounting

profession and in standards-setting process. The results are also useful input for the

IFAC process in harmonising global accounting and auditing standards. Current users

and potential investors (both local and foreign) may benefit from these findings so as

to be aware and familiar with the characteristics of the Libyan audit market and its

underlying culture.

The Paper discuses the issue of audited financial Statements reliability and independent audit in the context of agency theory