The Impact of Audit Environment Variables on Improving External Auditor Performance Quality in Libyan Audit Offices: A Field Study of Audit Offices in Tripoli

Abstract

This study aimed to identify the impact of audit environment variables on improving the performance quality of external auditors' performance in Libyan audit offices. The study employed a descriptive approach for its theoretical framework, relying on scientific books, journals, periodicals, and dissertations related to the study topic. The analytical approach was also used, utilizing a questionnaire designed to assess the impact of audit environment variables on external auditor performance quality in Libyan audit offices. A random sample of (40) questionnaires was taken audit office managers and external auditors audit offices located in Tripoli. It was distributed in full and the responses amounted to (38) questionnaires, i.e., a recovery rate of (95%). The data were analyzed and the study hypotheses were tested using the statistical software (SPSS). The study reached several conclusions, the most important of which are: There is a statistically significant effect of audit environment variables related to (audit offices – audit team – audited company) on improving the quality of the external auditor's professional performance. The greatest impact was that of the audited company variable, with an explanatory power of (R2 = 0.370), followed by the audit team variable, with an explanatory power of (R2 = 0.365), and then the audit offices variable, with an explanatory power of (R2 = 0.200). There is a direct positive relationship between the audit environment variables related to (audit offices - audit team - audited company) and improving the quality of the external auditor's performance. The study made several recommendations, the most important of which are: It is necessary to pay attention to the variables of the audit environment related to audit offices by developing professional and administrative policies and procedures that regulate the audit process, with the aim of improving the quality of the external auditor’s professional performance, and thus contributing to improving his professional performance. Attention should be given to the ongoing training and professional development of the audit team to ensure that they keep up with developments in accounting and auditing standards, and relevant legislation and regulations, which positively affects the quality of their professional performance.