Impediments of Environmental Auditing Practices Application in Libya - The Perspective Libyan Audit Bureau Auditors

Abstract

This study aims to identify the most important impediments that may face external auditors in the application of environmental auditing practices. To achieve this, the inductive approach was relied on in this study, and the questionnaire method was used as a tool for data collection, where 60 questionnaires were distributed to the study population represented by the Libyan Audit Bureau employees, and 40 questionnaires were retrieved, and the number of valid questionnaires reached 39, constituted 65% of the number of distributed questionnaires, and therefore it represented the final sample in this study. The collected data was analyzed using the Statistical Package for Social Sciences (SPSS). This study reached several results, the most important of which is the absence of deterrent penalties for the environmental violations of environmental regulations, laws and legislation, as well as the lack of records, data and accounting information related to environmental activities in reports and financial statements of organizations, it represents the most prominent obstacles that hinder the employees of the Libyan Audit Bureau, as external auditors, from carrying out the practice of environmental auditing. Therefore, this study recommends that there is the need for the concerned authorities to make amendments in environmental legislation and laws to monitor and follow up on environmental violations, and to oblige companies for providing accounting records and information related to environmental activities in order to effectively practice environmental auditing in Libya.