The Adoption of Analytical Procedures by Libyan External Auditors

Abstract

This study aimed to investigate the level of adoption of analytical procedures by Libyan external auditors in light of the requirements of the International Standards on Auditing (ISAs). It also examined the role of professional experience and qualifications, professional training, and professional confidence in enhancing such adoption. Furthermore, the study sought to assess the extent to which Libyan external auditors apply analytical procedures throughout the various stages of the audit process and to highlight their importance in improving professional performance and the quality of external auditing.

The study adopted the descriptive-analytical approach, which was considered appropriate for the nature and objectives of the research. A questionnaire was employed as the primary instrument for data collection from a sample of Libyan external auditors. A total of 150 questionnaires were distributed and all were returned. However, only 120 questionnaires were deemed valid for statistical analysis, representing a response validity rate of 80%. The data were analyzed using the Statistical Package for the Social Sciences (SPSS). Both descriptive and inferential statistical methods were applied, including frequencies, percentages, means, standard deviations, and the One-Sample t-test to test the study hypotheses.

The findings revealed that Libyan external auditors adopt analytical procedures to a high degree. The results also demonstrated a statistically significant positive effect of professional experience and qualifications, professional training, and professional confidence on the adoption of analytical procedures, with all significance levels being below 0.05, leading to the acceptance of all study hypotheses. Furthermore, professional confidence ranked first in terms of its influence on the adoption of analytical procedures, followed by professional training and professional experience and qualifications. These findings emphasize the importance of these factors in promoting the effective application of analytical procedures and enhancing the quality of external auditing.

Based on the findings, the study recommends strengthening the application of analytical procedures throughout all stages of the audit process, expanding continuous professional training programs for external auditors, encouraging auditors to obtain professional qualifications and certifications, promoting the use of modern technologies in implementing analytical procedures, and enhancing the role of professional and regulatory bodies in fostering compliance with the International Standards on Auditing. These measures are expected to contribute to the development of the external auditing profession and to improve the quality of financial reporting in Libya.