The Role of Information Technology Governance within the COBIT Framework in Improving the Quality of Internal Auditing: "A Field Study on Libyan Commercial Banks"

Abstract

This study aims to identify the role of Information Technology (IT) governance within the COBIT framework in improving the quality of internal auditing in Libyan commercial banks. The study addressed five main principles: meeting stakeholders needs, covering the enterprise end-to-end, applying a single integrated framework, enabling a holistic approach, and separating governance from management. The study adopted the descriptive-analytical approach, with the study population consisting of 158 individuals, including financial managers, department heads, accountants, and internal auditors working in commercial banks in the city of Benghazi. A total of 113 questionnaires were distributed to the sample members, of which 100 valid questionnaires were retrieved for statistical analysis using SPSS software. The study tested the following hypotheses: The main hypothesis "there is a role for IT governance according to the COBIT framework in improving the quality of internal auditing in Libyan commercial banks", and five sub-hypotheses were derived out from the main hypothesis. The study concluded that IT governance, as defined by the COBIT framework, plays a vital role in improving the quality of internal auditing across all its principles. The study recommended exploring the possibility of adopting the COBIT framework and gradually implementing its principles in a manner consistent with the nature of banking operations and their control requirements. It also recommended developing the professional and technical competencies of internal auditors, enhancing integration among departments, improving control mechanisms and IT risk management, and conducting future studies to evaluate the impact of the actual implementation of the framework on internal audit quality.