The Role of Internal Corporate Governance Mechanisms in Improving Accounting Information Systems in the Libyan Environment: A Field Study in Zawia Oil Refining Company

Abstract

This study aimed to identify the role of internal corporate governance mechanisms in improving Accounting Information Systems (AIS) in the Libyan environment, focusing on a field study at Al-Zawiya Oil Refining Company. To achieve these objectives, a descriptive analytical approach was adopted through reviewing relevant academic literature, scientific theses, and online resources. The descriptive analytical method was used to analyze the data and extract results using the Statistical Package for the Social Sciences (SPSS) software. The researchers used a questionnaire to collect the necessary data for this study. A total of (35) questionnaires were distributed to the study sample—consisting of directors, heads of departments, and employees—who were identified and selected using a random sample. (33) questionnaires were retrieved, representing a response rate of 94.3%. After review, all were found suitable for statistical analysis.

The study reached several key findings, the most important of which is: A significant impact and contribution of the internal corporate governance mechanisms (Internal Audit, Internal Control, and Information Technology) was confirmed in improving the Accounting Information Systems at Al-Zawiya Oil Refining Company. Specifically, the automated internal control system was found to be the most effective and influential mechanism, as the sample considers it the primary contributor to increasing the reliability and accuracy of accounting information. This reflects a strong reliance on technology in ensuring accounting quality.

The study concluded with a set of key recommendations, including: Management should develop advanced reporting mechanisms (such as BI Tools) within the Accounting Information Systems to ensure the provision of timely analytical and strategic information to support decision-makers, instead of relying solely on traditional reports. Additionally, it is essential to establish a continuous, advanced training program for internal auditors focusing on IT governance, cybersecurity review, and the evaluation of automated controls within modern accounting systems (such as ERP).