00- Issue Opening
Praise be to Allah, the Lord of the Worlds, a praise that befits His Majesty and Power, and peace and blessings be upon our master Muhammad, the Messenger of Allah, upon whom be the best prayer.
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The editorial board of the Accounting Studies Journal is pleased to present to you the sixth issue of the Accounting Studies Journal, published by the Libyan Accountants and Auditors Syndicate and under the supervision of the Libyan Authority for Scientific Research. We are also delighted to welcome our esteemed readers and share with them moments of achievement to enhance knowledge in the academic community and professional practices. The academic arena has witnessed notable developments in the past period, with efforts doubling to promote a culture of scientific research and knowledge exchange.
This issue comes to reflect those efforts, as it contains a diverse collection of studies and research that highlight current and important issues in the fields of accounting, auditing, and finance. Scientific research is an effective tool for achieving sustainable development, and for this reason, we strive to provide a platform that enhances dialogue between researchers and practitioners.
We hope this issue serves as an inspiration for researchers and students, contributing to opening new horizons of thought and creativity. We also emphasize the importance of collaboration among all stakeholders to enhance the status of scientific research in our communities.
We thank you for your continuous support, and we hope you benefit from the content of this issue and find it enriching to your knowledge and contributing to the development of your ideas.
Prof. Dr. Mohamed Shaaban Abouain
Head of the Editorial Board of the Journal
01- The possibility of applying the expected credit loss model to Libyan commercial banks.
"A practical study on commercial banks and the control department at the Central Bank of Libya in the eastern region as a model"
A. Ibrahim Abd Rabbo Bousokaya / Academic researcher
Dr. Khaled Zidane Al Fadli / Assistant Professor, Department of Accounting, Faculty of Economics, University of Benghazi
Expected Credit Loss Model. Libyan Commercial Banks. Central Bank of Libya
The study aimed to explore the feasibility of applying the Expected Credit Loss (ECL) model to Libyan commercial banks. To achieve this goal، the study employed the descriptive - analytical method and
utilized a questionnaire to collect the necessary data from the banks participating in the study. The study targeted the following departments: Credit، Risk، Accounting، and the Supervision Department at the Central Bank of Libya. The sample size amounted to 90 valid questionnaires out of 100، which were suitable for analysis.
The study used both descriptive and inferential statistics to analyze the data.
The study concluded with several key findings، the most significant being that the participating banks are capable of applying the ECL model. The study also provided several recommendations for the relevant parties، including the commercial banks and the Central Bank of Libya. Additionally، it suggested future recommendations to assist prospective researchers in enhancing knowledge on this subject.
02- Analysis of the factors affecting the evaluation of the performance of commercial banks using the Patrol model
Case study of the Jomhoreya Bank
Mr. Wael Sabry Al-Qaddar / Lecturer, Department of Finance and Banking - Faculty of Economics and Political Science, University of Tripoli
PATROL Model – Capital Adequacy – Credit Risk – Regulatory Efficiency – Banking Performance.
The study aims to show the most important factors affecting the performance of banks and analyze them by using the most important modern models used in evaluating the performance of commercial banks، which is the PATROL scale، as it is considered one of the early warning models for evaluating internal control tools، as it
combines financial and non - financial variables، which are mainly: capital adequacy، profitability، credit risk، organizational efficiency and liquidity، and the importance of these variables in evaluating the performance of commercial banks.
In order to achieve this goal، the study relied on its practical aspect first through evaluation according to the weighting method، through which the components of the model are calculated based on financial ratios، as 5 ratios were used to express the five components and each component was weighted with a specific weight to reach a single number that expresses the bank’s performance during each year، secondly، the evaluation according to the classification method so that the components of the model are classified on a scale from 1 to 5، 1 represents the best performance، while 5 represents the lowest performance، and the classifications are collected for all components to reach the annual performance evaluation of the Republic Bank.
The study reached several results، the most important of which is that the analysis results showed an increase in the bank’s credit risks in some years، as we find that the highest credit risk ratio in the Republic Bank was in 2019. The analysis results showed that the highest liquidity ratio in the Republic Bank was in 2021، reaching 3.11)، and the lowest ratio was (2.79) during 2013. There is fluctuation in the ) liquidity ratios of the Republic Bank، and this fluctuation is an indicator of high risk and instability.
03- The extent to which industrial companies rely on the target costing method as a method of cost management
Field study within Al-Rabee Group of Companies for Sponge Industry
Dr. Adel Mohammed Al-Lafi Al-Najjar / Associate Professor, Department of Accounting - Faculty of Economics and Political Science, University of Tripoli
Target cost method، Cost management، Modern management accounting methods.
The study aimed to identify the extent to which Al - Rabie Group of Companies for Sponge Manufacturing relies on the target costing method to manage and reduce costs in a way that enables competition in the market، and what are the obstacles that management faces in implementing this method. The questions and hypotheses of the study had tested by preparing and distributing a questionnaire form on a study
sample and the results analyzed by using the statistical program (SPSS).
Results concluded that Al - Rabie Group of Sponge Manufacturing Companies does not use the target costing method in managing costs. Study also indicated that there are obstacles and difficulties that limit the adoption and application of the target costing system. The study recommends that Al - Rabie Group of Sponge Manufacturing Companies should implement the target costing system because of its impact on achieving effective cost management. Also the necessity of training the appropriate human resources to apply the target costing system before starting to implement it. In general، companies must prepare the appropriate infrastructure to overcome the obstacles to applying the methods.
04- Advantages and challenges of implementing digital banks in the Libyan banking sector
A survey study of a sample of employees in Libyan commercial banks
Mr. Ibrahim Kamel Abridan / Lecturer, Department of Accounting - Faculty of Economics, University of Tobruk
Mrs. Nahed Fathi Bousamra/ Assistant Lecturer, Department of Accounting - Faculty of Economics, University of Tobruk
Digital Transformation – Digital Banks
This study aimed to identify the concept of digital banks ، the importance and advantages of digital transformation for Libyan banks and to identify the difficulties and obstacles to digital transformation for Libyan banks that limit their success in providing services via the Internet. To achieve the objectives
of the study، the researcher followed the descriptive analytical approach، and data were obtained through a questionnaire. The research reached many conclusions، the most important of which is that the application of an integrated digital bank achieves multiple advantages that lead to the success of the digital bank in its work and attracts many customers to the bank.
Among the most important of these advantages are that digital banks save time ، reduce costs ، help the bank to expand and spread and reach a larger segment of the public and attract more customers. The presence of digital banks will increase the number of banking service providers in the country، which is reflected in increased competitiveness. There are many difficulties and obstacles that limit the spread of digital banks in the Libyan environment، including: the weakness of the legislation required for digital transformation،
such as the Electronic Transactions Law، the Electronic Crimes Law، and the Personal Data Protection Law، the weakness of the business environment that stimulates and attracts local and foreign investments in this sector، the of spread of digital culture، and weak communications. This requires introduction of the fifth generation of communications and modernization of infrastructure The study recommended Central Bank to provide all necessary capabilities to support the application and spread of digital banks، activate the work of regulatory controls and develop the national legal framework to create an environment of trust appropriate for electronic administration، the necessity of providing appropriate information infrastructure in terms of
computer hardware، software، communications services and the Internet.
05- The impact of applying the balanced scorecard in enhancing strategic thinking
A field study on public administration at the University of Zawiya
Dr. Abdel Salam Mohamed Ashour Belkacem / Assistant Professor, Department of Management - Faculty of Economics, Ajilat, University of Zawiya
Balanced Scorecard، Customer، Internal operations، Learning & Growth، Strategic Thinking.
This study aims to uncover the impact of enforcement the Balanced Scorecard application through its dimensions (Customers، Internal Operations، Learning & Growth) In enhancing strategic thinking in General Administration of Zawia University. In this study، the researcher relied on the descriptive analytical approach. The sample consists of Department managers، section heads، office managers and employees of the General Administration of Zawiya University، and their number is (80) individuals. The field study was
implemented based on the questionnaire as a study tool، and then the data was collected and statistically analyzed using the (SPSS) program.
The study found a set of results، the most important of which are: There is a statistically significant effect of the dimensions of the balanced scorecard (customers، internal processes، learning and growth) in enhancing strategic thinking among those occupying leadership positions at Zawia University.
which explains that the use of the dimensions of the balanced scorecard contributes to enhancing strategic thinking. The study also came up with a set of recommendations including: the need for the Al - Zawiya University to adopt the Balanced Scorecard (BSC) by its three main dimensions (customers،
internal operational processes، and learning and growth) as a basis for evaluating its strategic performance، and also conducting more training and development programs for those in leadership positions to raise their level of strategic thinking. It reflects on strengthening emerging leaders to benefit
from their ideas and scientific expertise and opening the way for them to assume leadership positions.
06 - The role of internal audit in reducing the risks of electronic accounting information systems
An experimental study on Libyan oil companies
Dr. Al-Siddiq Othman Al-Saadi / Professor, Department of Accounting - Faculty of Accounting, University of Gharyan
Dr. Shams El Din Mohamed Ali Farag / Associate Professor, Department of Accounting - Faculty of Accounting, University of Gharyan
Keywords :
Role of internal auditors، mitigating risks، electronic accounting information systems، Oil Libyan companies.
This study aims to investigate whether internal auditors in oil Libyan companies have the ability and necessary skills in the field of electronic accounting systems security. The study also aims to find out if internal auditors apply sufficient procedures for protecting and mitigating risks facing electronic accounting systems.
In order to achieve the objectives of this study، a questionnaire survey is adopted for data collection. Population of the study consists of three oil Libyan companies. The results reveal that internal auditors working for these companies apply all protecting measures necessary in mitigating risks facing electronic accounting information systems.
07 - The impact of financial integration and consolidation of electronic banking operations in enhancing and developing electronic financial transactions
"Libya as a model"
Mr. Saud Al Mahdi Zayed / Assistant Lecturer, Department of Finance and Banking - Faculty of Economics and Political Science, University of Tripoli
Financial integration، e - banking، e - financial transactions
This paper deals with (the impact of financial integration and integration of electronic banking operations in promoting and developing electronic financial transactions “Libya a model”) and to achieve this matter، the descriptive analytical approach was used in this study، through the use of a questionnaire as a tool to collect the necessary data using the statistical program (SPSS) and the study population consisted of all 16 Libyan commercial banks، and the study questionnaire was distributed to officials and employees of the digital
transformation and electronic banking services departments in the banks under study.
The study found a statistically significant impact of the merger and financial integration of electronic banking operations in promoting and developing electronic financial transactions، as the value of statistical significance reached (0.00)، which is less than (0.05) and indicates the significance of the relationship between the two variables، where the impact rate was (94 % )، with the high level of integration and financial integration of electronic banking operations، it was found that the value of the average response reached (3.3) according to the five - gradient scale، due to the application of integration and information cooperation projects and the formation of alliances Strategy with technology companies and integration procedures with Libyan banks as well as joint cooperation among them in order to ensure the expansion of their participation in the implementation of electronic financial transactions.
8 - The extent of the impact of environmental pressures on the quality of performance of the Audit Bureau auditors when reviewing financial statements and preparing reports.
D. Congratulations, bring the mazoghy / Associate Professor, Department of Accounting - Faculty of Economics and Political Science - University of Tripoli
work stress - Auditors
Work stress is considered one of the important topics that relate to an important element in organizations، which is the human element that spends most of its time at work. It is considered the basis on which organizations are based، as attention to this element is effectively reflected in the individual in order
to achieve the desired goals. This study aimed to identify The impact of work stress on Auditors of the Audit Bureau and identifying the causes of work stress ways to reduce it. The researcher relied on describ- ط in the Audit Bureau and٠
ing and analyzing the primary data for the research collected by means of a questionnaire on the Statistical Package for Social Sciences (Statistical Package for Social - SPSS Science) programs. A number of statistical methods within this program through which we were able to prove the research hypotheses and reached results، the most important of which is that work pressures have an impact on the work of the auditors of the Audit Bureau، and this effect remains weak due to the presence of sufficient experience among the auditors of the Audit Bureau، through which these pressures can be overcome and that The most important pressure affecting the work of the Audit Bureau’s auditors is the division in institutions within the state. The study recommended the necessity of providing the appropriate environment that is related to the field of work،
providing material and moral stimulation to the Audit Bureau’s auditors، and everything that would reduce work pressures، and not introducing political matters into the work of the Audit Bureau، which would influence on the efficiency and effectiveness of the Bureau’s auditors in performing their work.
9 - Factors that contribute to the quality of external audit services from the point of view of employees in audit offices in the Libyan environment
A field study on a sample of audit offices in the western region - Libya
Dr. Jamil Mohammed Khalat / Associate Professor, Department of Accounting - Faculty of Economics and Political Science, Sorman, Sabratha University
Abdulrahman Ahmed Al-Tayeb Al-Mahjoubi / Postgraduate student at Sabratha University
External Audit، Audit Firm، Audit Team، Audited Entity.
This study aims to identify the factors affecting the quality of external audit services and analyze the concepts related to external audit quality through the audit office، the audit team، and the company being audited. The researchers collected data to achieve the study›s objectives by developing a questionnaire that was reviewed by specialists and experts in this field. The data obtained were analyzed using the SPSS statistical package، which revealed that there are factors that contribute to the quality of external audit services associated with the audit office، the audit team، and the audited entity.
10 - Financial performance evaluation using GAMEL model
Analytical study of the Republic Bank during the period (2011 - 2023)
Mr. Sharaf Al-Din Khalil Al-Bay / Lecturer, Department of Finance and Banking - Faculty of Economics and Political Science, University of Tripoli
Performance Evaluation - CAMELS Model - Banking sector
The banking sector has a significant impact on the country’s economic growth، and due to the importance of this sector، its financial performance must be evaluated from time to time، to measure the cash situation of each bank and how to control its full efficiency. The research aims to evaluate financial performance
according to the elements of the CAMELS model، which include capital adequacy، asset quality، management efficiency، profitability، liquidity، and market risk sensitivity. The research included a study of the Libyan Republic Bank during the period from 2010 to 2023، and the ratio of basic capital to total assets was used to
measure capital adequacy، the ratio of investments to total assets to measure asset quality، the ratio of expenses to profits to measure management efficiency، the ratio of net profit to income to measure profitability، the ratio of cash to deposits to measure liquidity، and the ratio of interest income to expenses to measure market risk sensitivity. Among the most important results of the research is that the bank obtained the classification for its overall financial performance according to the results of the composite classification of the CAMELS model during the research years، in addition to the weakness of the bank’s asset management.
11 - The extent of the Libyan Audit Bureau’s commitment to financial control procedures to reduce financial corruption
Najia Ali Ibrahim Al Sharif / Lecturer, Department of Accounting - Faculty of Economics and Political Science, University of Tripoli
Corruption, Financial corruption
This study addressed the extent of the Libyan Audit Bureau’s commitment to financial control procedures to reduce financial corruption. This study relied on the descriptive analytical approach to collect the study data, by using a questionnaire form that was distributed to the study sample, which included the Audit Bureau employees in the General Administration and the Bureau’s branch in Tripoli. To analyze the data, the signal selection (sing test) was used.
The study concluded in its results that the Audit Bureau›s procedures seek to reduce financial corruption in public institutions and companies in Libya.
The study recommended adopting an incentive system that helps members of the Bureau to raise efficiency, and leads to contributing to creating incentives to participate in performing financial performance control in public institutions and companies.