financial crises and cases of obstruction and collapses of several companies in the various countries of the world. This lead to the necessity of the activation of control in the companies managements by the implementation of the corporate governance concept therein. Consequently, the function of internal audit entered into new phases of development in order to contribute in preventing the financial violations and transgressions until the occurrence of any future crises or collapses is avoided. Today, internal audit evolved into being considered as one of the most significant parties participating in the companies governance.

This thesis is aimed at shedding light upon the role that may be played by internal audit in the Libyan industrial companies enlisted in the Libyan stock market in order to propose the implementation of corporate governance as a key to their future development. With the intention of realizing the objective of the study, the main following hypothesis has been formulated:

The function of internal auditing in the Libyan industrial companies may contribute in activating the implementation of companies governance.

Based on the defined hypothesis, this thesis has been divided into three main chapters, where the first chapter considers the general framework of the study and second chapter treats the theoretical framework of the study, involving two parts; the first part is the framework of the notions of companies governance and the second part is the analysis of internal audit from the aspect of corporate governance. But third chapter has treated the research study involving the general framework of the methodology followed therein by analyzing the data obtained through the questionnaire forms distributed to the respondents. They included managers of the financial administrations, heads of finan