The Impact of Audit Committee Characteristics on the Quality of Financial Reporting in Libyan Public Commercial Banks Operating in the Eastern Region

Abstract

The study aimed to identify the impact of the characteristics of audit committees on the quality of financial reports in Libyan commercial banks. The study population consisted of employees from selected departments relevant to the study topic in public commercial banks operating in the eastern region of Libya, specifically including the National Commercial Bank and Wahda Bank. This study relied on both the inductive and deductive approaches. The study relied on the questionnaire as a data collection tool, as 108 forms were distributed, and 90 valid forms were received for analysis It found a statistically significant impact of the characteristics of audit committees on the quality of financial reports in Libyan commercial banks, and the contribution of audit committees to increasing the reliability and credibility of financial reports and protecting the rights of shareholders in Libyan commercial banks. The study made many recommendations, the most important of which are: determining the conditions of independence that must be met by members of audit committees, taking care in selecting members of audit committees, while emphasizing the importance of there being proportionality and suitability between their qualifications and the tasks assigned to them to improve their efficiency in performing their supervisory tasks, and developing the work of audit committees in accordance with the Governance Guide for the Banking Sector issued by the Central Bank of Libya in (2010).