The Role of Modern Internal Audit Activities in Reducing Financial Corruption in the Banking Sector: A Field Study

Abstract

      This study aimed to explore the role of modern internal audit activities namely risk management, governance, and value addition—in mitigating financial corruption within Libyan commercial banks, as well as how this role can be enhanced. The researcher employed a descriptive-analytical approach to describe and interpret the study results and to test the hypotheses using the Statistical Package for the Social Sciences (SPSS). A total of 70 questionnaires were distributed, of which 65 were deemed valid and used for analysis, yielding a response rate of 93%. The study concluded that internal audit activities play an effective role in reducing financial corruption. However, certain prerequisites must be met for these activities to perform their functions efficiently. The study recommended that Libyan commercial banks continue to strengthen the independence of internal auditing, provide ongoing training for internal auditors on anti-corruption techniques, and enhance their digital auditing skills.