Towards an effective role to the Libyan Audit Bureau in enhancing corporate governance in Libyan oil sector

The main aim of this research is to identify the roles of Libyan Audit Bureau (LAB), with a specific focus on the challenges facing the LAB members in following up corporate governance practices. LAB is the most important mechanism that provides a corporate governance to Libyan oil sector companies.

Based on the research objectives and the practicability of research questions that are oriented towards pragmatic philosophy, a mixed methods research is employed, to collect and analyse both quantitative and qualitative data through surveys and semi-structured interviews. The survey was circulated to the LAB members who are following up the corporate governance in Libyan oil sector. 231 questionnaires were distributed and the response rate was 68%.

Regarding the qualitative phase of the research, semi structured interviews have been conducted with 6 interviewees (from Libyan Audit Bureau members who are responsible for planning and monitoring corporate governance).

The study finding indicate that monitoring corporate governance in Libyan oil sector by LAB is still its infancy, and there are some challenges facing by the sector. Libyan Audit Bureau has a positive impact on corporate governance practices. The role of the LAB can be more effective by adopting a policy which considers developing function such as the stakeholders’ rights, Islamic principle, transparency and disclosure and conflict of interest as well as some external factors which are: Accounting and Auditing Profession, legal system, enforcement of the law, specific futures of the Libyan culture and raising awareness of corporate governance.