00- Issue Opening
Praise be to God, Lord of the Worlds, with praise befitting His Majesty and Power, as befits His Majesty. Peace and blessings be upon our Prophet
Muhammad, the Messenger of God, upon him be the best prayers and peace.
And after
We are pleased to present to our esteemed readers the seventh issue of the Journal of Accounting Studies, published by the Libyan Accountants and Auditors Syndicate, under the supervision and follow-up of the Libyan Authority for Scientific Research. This issue comes at a time when the importance of accounting studies is growing in promoting transparency and integrity in business and providing innovative solutions to the challenges facing the financial and accounting sector in Libya. This makes it imperative to enhance awareness and knowledge in the fields of accounting and finance.
We welcome you to the seventh issue of the Journal of Accounting Studies, through which we seek to shed light on research and studies related to developments in accounting, auditing, and finance, their innovations,
and global best practices in this field. We also aim to provide a platform for researchers and professionals to share their ideas and experiences, contributing to the advancement of accounting knowledge and practices.
In this issue, we will feature a collection of scholarly articles covering diverse topics, including financial performance analysis, the impact of technology on accounting, and strategies for improving the quality of auditing. We also welcome your valuable contributions and comments, which will help us improve the journal's content and expand its horizons.
We hope this issue will be a starting point for more fruitful discussions and pioneering initiatives in the fields of accounting, auditing, and finance. We seek to foster collaboration between academics and professionals to achieve common goals.
We thank you for your continued support of our journal and wish you an enjoyable and useful reading.
Best regards,
Prof. Dr. Mohammed Shaaban Abu Ein
Editor-in-Chief
01-The Extent of Adherence to the Principles of Information Technology Governance According to the COBIT 2019 Framework
Case Study of the Executive and Management Authority of the“
Great Man-Made River Project، Benghazi Branch
Ms. Reem Saad Ali / Assistant Lecturer at the Faculty of Economics - Tobruk University A PHD student at the Libyan Academy OF graduate Studies، Benghazi branch
Keywords:
Executive and Management Authority of the Great Man-Made River Project، Information Technology Governance، COBIT 2019 framework
The study addressed the extent to which the Executive and Management Authority of the Great Man-Made River Project، Benghazi Branch، adheres to the principles of Information Technology Governance in accordance with the “COBIT 2019» framework، considering that the Executive and Management Authority of the Great Man-Made River Project has a unique and highly significant nature، as it is relied upon to resolve the issue of the scarcity of potable water throughout Libya. Therefore، the study sought to ascertain the extent of the Authority›s interest in technological developments and the adoption of specialized
frameworks in light of the principles of Information Technology Governance; in order to provide flexibility in operations and activities and to keep pace with ongoing developments. To achieve this، a mixed-method approach was employed، relying on questionnaires and personal interviews with accountants، auditors، and IT specialists to reach the study›s objectives. The main findings of the study indicated that participants agreed on adherence to most of the statements of the five domains of the “COBIT 2019» framework، in addition to an interest in applying technology، albeit without a general framework to regulate it. Despite the efforts exerted by the Authority، the move towards complete and proper adoption of governance and Information Technology Governance remains in its early stages. The study recommended emphasizing the adoption of a comprehensive strategy for the proper implementation of governance، monitoring the regulatory frameworks for Information Technology، and working towards their application.
02-The role of applying green accounting in improving the transparency of financial reporting information for the purpose of achieving sustainability
A feild study on companies operating in the city of Misurata
Dr. Aisha Mohammed Al-Arabi Al-Sharif / Assistant Professor، Department of Accounting - Faculty of Economics and Political Science - University of Misurata
Ayyoub Mohammed Arabi /Postgraduate Student، Faculty of Economics and Political Science - University of Misurata
Mohammed Hamed Al-Basir
Ali Abdul Karim Lahio
Keywords:
Green accounting - transparency of financial reporting information
- sustainable development
This study aimed to identify the extent of accountants’ awareness of the importance of applying green accounting and to identify the role of green accounting in improving the transparency of financial reporting information for the purpose of achieving sustainability. To achieve the study objectives، the questionnaire was used as a source
for collecting data from the study sample and was distributed to accountants and financial report preparers for a sample of industrial companies operating in the city of Misurata، numbering (95). The study relied on the descriptive analytical approach and the statistical program (SPSS) (Statistical Package for Economics and Social Sciences) was used to analyze the data and reach the results. The study reached several results، the most important of which is that there is a statistically significant relationship between accountants’ awareness of the importance of applying green accounting، and that there is also a statistically significant relationship between the role of applying green accounting and improving the transparency of information in financial reports. Accordingly، the researchers recommended working on enacting local laws and regulations that keep pace with the updated international standards that oblige industrial companies to disclose environmental costs in the financial statements، which supports their transparency، and the need for industrial companies operating in the city of Misurata to pay more attention to applying green accounting to contribute clearly to the responsibilities and duties that companies must bear in the field of the environment for development purposes.
03- Factors of changing the external auditor in Libyan commercial banks from the point of view of external auditors
A field study on the audit offices approved by the Central Bank of Libya
Dr. Mohamed Farag Shagluf/ Associate Professor، Department of Accounting - Faculty of Economics and Political Science - University of Tripoli
Key words:
External Auditor، Libyan Banks، Audit Offices، Central Bank of Libya
This study aimed to identify and determine the factors influencing the change of the external auditor in Libyan commercial banks from the point of view of the external auditors registered with the Central Bank of Libya. In order to achieve the study’s objectives، the researcher conducted a field study on audit offices registered in the Central Bank of Libya’s registration register، who represent the
study population، namely (26) offices. The study found that there is a positive impact of both the relevant factors، which are “the factors related to the bank under review and the factors related to the standards of professional conduct.”.
04- The extent of awareness of the auditors of the Libyan Audit Bureau of the importance of applying human resources accounting in Libyan institutions
A survey study from the point of view of the auditors of the Libyan Audit Bureau
Abdelhamid. A.A. Magrus /Assistant Professor، Department of Accounting - Libyan Academy Tripoli
Abdelmonem. M.E. Hussin / Researcher And Auditor -Libyan Audit Bureau
Keywords:
Perception، Human Resources Accounting، Libyan Audit Bureau، Libyan institutions.
The study aimed to identify the extent of awareness of the auditors of
the Libyan Audit Bureau of the importance of applying human resources accounting in Libyan institutions. The study relied on the descriptive analytical approach، and 30 questionnaires were distributed to the study sample، of which 25 questionnaires were returned. The researchers used several statistical measures such as frequency distribution and percentages، reliability and stability tests، arithmetic averages and standard deviations to analyze the obtained data. Pearson’s correlation coefficient and the (One-Simple-T-Test) test were also used to study the relationship between the variables and test the study hypotheses at the level (a=0.05) using the Statistical Package for Social Sciences (SPSS). The study concluded that the auditors of the Libyan Audit Bureau are aware of the importance of applying human resources accounting، and recommended the need to hold specialized seminars and workshops to increase awareness and develop knowledge of the human resources accounting system in Libyan institutions.
05- Factors affecting environmental disclosure and the obstacles facing it
Ali Masoud Al-Drouqi / Lecturer at the National Authority for Scientific Research
Rajab Mansour Amtir /Assistant Professor، Department of Accounting - Faculty of Economics - University of Tripoli
Key Words:
Environmental Disclosure، Corporate Social Responsibility، cement companies
This paper presents an empirical investigation into environmental disclosure practices of cement companies operating in Libya. It aims at exploring key motives for these companies for disclosing environmental information in their annual report. Hence، the paper seeks to answer the following questions:
What are the motives and reasons that make cement companies in Libya disclose environmental information? And What are the obstacles that may prevent these companies from disclosing environmental information? In answering these questions and meeting the aims of the research questionnaire method was used to collect data. A total of 50 questionnaires were collected 42. The results indicate that cement companies considered issues such as
avoid lawsuits being filed against them، to give an impression of the extent of its commitment to environmental laws and the right of investors and other external parties to receive environmental information as motives that encourage them to disclose environmental information. On the other hand، the main obstacles for non-disclosure are the lack of incentives from the state
to reward companies that disclose their environmental information. Another obstacle is the lack of legal requirement detailing a legal obligation to disclose environmental information.
06 - The role of digital transformation in
reducing tax evasion
Field study on the Libyan Tax Authority
Farag Mahmoud Hamed Al-Mabrouk / Lecturer, Department of Accounting - Faculty of Economics, University of Benghazi
Keywords:
General budget; Tax Authority; Tax revenues; Digital transformation.
This study aims to highlight the role of digital transformation in the tax system in reducing tax evasion by increasing the quality of the tax examination process.
It seeks to highlight the impact of digital transformation in reducing tax evasion, which contributes to serving and developing the economy. The scientific method, both descriptive and analytical, was relied upon. The sample size was chosen from a population represented by a number of employees, tax auditors, and managers at the Tax Authority in the cities of Tripoli and Benghazi using lists Using questionnaire lists, one of the most important results reached by the field study is that there is a statistically significant effect between digital transformation and the efficiency of the tax system, and reducing tax evasion on the one hand, as well as increasing
the collection of tax revenues on the other hand. The study recommended the necessity of completing the digital transformation process and developing its current levels within the Tax Authority through the shift from the manual system to the electronic system, which improves the efficiency of administration and reduces the
administrative burden on Staff.
07 - Proposing an electronic accounting system using artificial intelligence technology for commercial companies operating within the city of Derna - Libya
Dr. Nouri Suleiman Al-Turkawi / Assistant Professor, Department of Accounting - School of Administrative and Financial Sciences, Libyan Academy
Keywords:
accounting system - commercial companies - Artificial Intelligence technology.
Many commercial companies and projects that aim to make a profit do not have an electronic accounting system, despite of its importance for stating the company’s financial position and displaying the results of the activity, whether profit or loss. Also, a few of these companies use a manual accounting system, and the process of preparing financial statements takes a long time, and the
results obtained are inaccurate and not free of errors. Based on the ambition of entrepreneurs who seek to make a difference in societies and develop businesses differently, this paper aims to develop an integrated electronic accounting system for commercial companies in Libya by using Artificial Intelligence technology (AI). Data were collected through observation, by visiting some commercial projects and companies. The purchase and sale invoices of these companies
were also reviewed. In addition, information related to the accounting system was collected from books, accounting references, and the Internet. The paper concluded with the development of an electronic accounting system using Artificial Intelligence technology. This proposed system works online and can be applied to any business activity. To prove the effectiveness of the proposed system and its safety from software errors, several tests were successfully
conducted on it using data from commercial companies. The new system is characterized by the ease of recording journal entries, posting to ledger accounts, and preparing the trial balance, balance sheet, and income statement without the intervention of an accountant, that is, electronically. This ensures that no errors occur and that the results are sound and accurate. The system also records the closing entries and prepares the profit and loss account automatically without the intervention of the user (the accountant). It also prepares the accounts for a new financial period and displays goods at the end of the period and the beginning of the period. It also uses global financial indicators and ratios that help the company predict financial failure before it occurs. The system also contains a
seller control panel through which goods are sold, customer accounts are created, and invoices are prepared and printed. The sales of each individual seller and for what date are also displayed. Thus, using the system, it is possible to authorize any number of sellers, while separating the sales of each seller, so that any sale can be determined by who made it
8 - The impact of foreign ownership on the financial stability of the Libyan banking system
Marei Elbadri /Lecturer, Department of Finance and Banking - Faculty of Economics, University of Benghazi
Keywords:
Foreign ownership; Financial stability; Libyan banking system.
This study aims to test the impact of foreign ownership on the financial stability of the Libyan banking system during the period from 2012 to 2020. The collected data were analyzed using the Ordinary Least Squares method (OLS). The study used the Z-SCORE index as a dependent variable to measure financial stability, while the share of foreign ownership was the main independent variable. In addition, the study used bank-specific factors, market structure, and macroeconomic factors as control variables. Our results confirm that foreign ownership has a positive and statistically significant impact on the financial stability of the Libyan banking system, while increasing state ownership has a negative and statistically significant impact by encouraging banks to take more risks. In general, our empirical evidence shows that cost efficiency has a negative and insignificant relationship and that inefficient banks are less stable. While bank size has a positive and statistically
significant effect, indicating that larger banks are more stable. The negative and statistically significant value of market concentration indicates that low competition in the Libyan banking system leads to low financial stability. Regarding macroeconomic factors, our results confirm that the GDP growth is positive and statistically significant, meaning that higher economic growth leads to greater banking stability. While money supply has a negative and statistically significant effect as a contractionary monetary policy through banks’ ability to lend affects financial stability. This study recommends that the regulatory authorities in Libya should take the necessary actions to attract and encourage foreign investment in the banking sector such as flexibility in legal regulations to attract foreign banks and
facilitate their operations in Libya.
9 - The role of methods and techniques of dealing with bad debts in Libyan commercial banks
Dr. Ibrahim Masoud Al - Farjani / Professor, Department of Finance and Banking, Faculty of Economics, University of Benghazi
Mr. Nidal Mohammed Al - Ammami / Employee at Al Wahda Bank, Benghazi, Libya
Keywords:
commercial banks, bank credit, dealing with bad debts
The study aimed to identify the role and methods of dealing with bad debts in the Libyan commercial banks, and to achieve the objectives of the study, both inductive and deductive approaches were relied upon, and the questionnaire form was used as a main tool for data collection, and the study population consisted of Libyan commercial banks, for the purposes of The study,the six commercial banks which are (Wahda - National Commercial - North Africa - Trade and Development - Sahara - Aljumhouria) due to the large volume
of credit with them. Where (120) questionnaires were distributed to the participants in the study, and the number of questionnaires retrieved was (104), and the obtained data were analyzed using the statistical package program (SPSS). The study reached many results, the most important of which is the existence of an effective role for the methods and methods of dealing with bad debts in Libyan commercial banks. Through communication with defaulting
clients, and the need to carry out periodic follow - up of the loan and the borrower from granting until repayment, and activating the role of the judiciary in collecting mortgages (guarantees) in the case of debts that have exhausted the negotiation stages.
10 - Explaining Differences in the Adoption of Management Accounting Practices among
Organizations from a Contingency Theory Perspective: A Theoretical Study
Dr. Sami S. El Hossade/ Assistant Prof, Accounting Dept, Faculty of Economics, University of Benghazi
Dr. Khaled Z. Al Fadhli / Assistant Prof, Accounting Dept, Faculty of Economics, University of Benghazi
Keywords:
Conditional theory, conditional factors, management accounting practices.
Despite the role of management accounting practices in improving
decision-making and enhancing organizational performance, their
adoption varies among organizations, raising questions about the factors influencing this disparity. Contingency theory explains these differences by emphasizing that the selection of accounting practices largely depends on external factors related to the environment and internal factors specific to the organization. This study aims to review the literature to identify the key factors influencing the adoption of management accounting practices. The findings indicate that this adoption is affected by interrelated factors. Internal factors such as technology, organizational structure, firm size, and strategy play a crucial role, while external factors such as environmental uncertainty and competition create pressures that drive organizations to adopt specific accounting practices.
11 - The role of accounting disclosure in supporting the effectiveness of internal control
A field study on the electricity company
Dr. Maryam Al Mahdi Muhammad /Lecturer - Faculty Member, Department of Accounting - Faculty of Economics and Political
Science - University of Tripoli
Keywords:
Accounting disclosure - Internal control.
The current study aimed to identify the role of accounting disclosure in supporting the effectiveness of internal control and enhancing its performance in the Electricity Company, and to evaluate the comprehensiveness and clarity of the announced financial information and its impact on strengthening the internal control
mechanisms in the company, and to determine the relationship between accounting disclosure and raising the level of transparency and credibility among the relevant parties inside and outside the company. The study relied on the descriptive analytical approach, and the study community consisted of some employees of the General Electricity Company. The study sample included (39) individuals representing employees in the relevant departments using the stratified random sample method. The researcher used a questionnaire with data consisting of three main axes, each axis
covering one of the dimensions of the study (disclosure of financial information, disclosure of accounting policies, enhancing transparency). The study concluded that accounting disclosure plays a major role in enhancing the clarity of financial information, and that it plays an essential role in accounting policies. Accounting
disclosure also has an essential role in enhancing transparency within companies, as it helps improve transparency, accuracy of financial reports, facilitate comparisons, and ensure compliance with international standards. Accordingly, the study recommended
that there is a need for further improvement in some areas such as inventory disclosure. And transparency of financial operations.