Technology and the media are interwoven, and neither can be separated from contemporary society in most core and semi-peripheral nations. Social media influences our opinions of the world around us generating different perceptions in the mind of individuals through various businesses, consumers, political parties, countries etc. because the way a person views the world depends on the kind of information they view and read about. In case of social media, the news is sometimes fragmented and without checking the sources people tend to accept the news as it is which changes their views regarding issues of importance. Technology increases the efficiency of the tasks done at workplace by allowing individuals to brainstorm as well as take notes in a faster pace. Dependency on technology makes life easier but it is also a threat to privacy of the user because we become vulnerable to cyber-attacks and threats.
of the concept of corporate governance and the need of monitoring the company’s internal performance to tighten control inside the company to preserve stability and consistency.
5. The increase of international operations range, tied to sophisticated information technology and to the increase of E- commerce amount.
As a result, the internal auditing adopted new function which is risks evaluation, governing and assuring control systems to assist the company in enhancing its operations and consulting activities through taking a leading role in company governing process and in the field of risk management and observation.
Most professional reports issued by professional organizations in the field accounting and auditing, performed the studies focused on weakened health of companies in many countries. They also studied cheating and manipulating cases in financial reports and observed corporate governance of sampled entities. Those reports have confirmed the following:
A. The need of having internal auditing function in all companies.
B. The internal auditing management has to perform an effective role in governing and evaluating control systems and managing risks.
This role of modern auditing is vague and does not define the functions and responsibilities of the internal auditor clearly towards risk management, observation and governing; so it motivates the researcher to study and reveal the role of internal auditing in Libyan industrial companies.
1.2. Issue of study:
In the last few years, the increase of bankruptcy, insolvency cases and failure in many companies lead to more interest in internal auditing systems and to the urgent need to activate what is known as company governance. Concerns regarding the necessity of improving the role of internal auditor and adding new functions to the auditor to help in avoiding bankruptcy, insolvency and financial trespasses, particularly after the failure of external auditor in early detection of business risks and in issuing unmodified reports. Being all the time inside the company enables the internal auditor to become more aware of the nature of operations and the level of performance, and also to follow all the actions and all aspects of related activities. The internal auditor also performs a regular test around the year in order to include all types of company operations.
So the functions performed by the internal audit of the company have developed. Namely, internal audit become that kind of function which is no longer limited to just testing financial and accounting operations, or even all company operations, it has got the role of testing and evaluating observation systems, and finding and evaluating risks surrounding the activities of the company which reduces related risks in accomplishing the targets of the company. The internal auditing has become a major component of any governing process in the company; it is the function that connects all governing components in the company (management board, auditing committee, external auditor), these various functions have made the internal auditing an activity that adds value.
Most professional reports dealing with these developments have confirmed the role of internal auditing in testing and in evaluating observation systems, and in finding out and evaluating treating these risks and governing them. However, the internal audit function in Libya is still concentrating on exercising its traditional role and carrying out the observational function.
Therefore, the importance of this role is significant and it should be revealed to industrial companies in Libya in order to illustrate how internal auditing can contribute in supporting the management of the entity. The issue can be framed in the following main question: What role can internal auditing have in Libyan industrial companies to activate corporate governance system? To answer this main question, the following sub questions are formulated:
1. To what extent can internal auditing in Libyan industrial companies do the jobs related to evaluation of internal observation system?
2. To what extent can internal auditing in Libyan industrial companies do
