The Reality of Accounting Systems Resilience and Its Role in Addressing Economic Shocks to Enhance Business Continuity in Industrial Companies "A Field Study on Al-Ahliya Cement Joint Stock Company"

Abstract

This study aimed to evaluate and diagnose the extent of accounting systems flexibility applied at the Al-Ahlia Cement Joint Stock Company in Libya, while analyzing the role of this flexibility in confronting economic shocks—such as exchange rate and energy price fluctuations—to enhance business continuity. The study relied on a descriptive-analytical approach, where primary data were collected through a questionnaire distributed to a sample of 62 relevant employees, including managers, department heads, auditors, and accountants within the company. Data were analyzed using SPSS software. The results revealed a significant fundamental deficiency in the flexibility of the company's current accounting systems regarding their structure, procedures, and outputs, which limits the ability to respond quickly to shocks. Furthermore, the study proved that economic shocks lead to a statistically significant deterioration in the quality of accounting outputs, specifically causing delays in analytical reports and disrupting inventory and cost pricing processes.

Based on these findings, the study recommended the necessity of re-engineering accounting procedures to ensure real-time updates for cost and pricing equations to counter energy and currency fluctuations. It also emphasized shifting toward modular accounting systems that allow for rapid modification and development. Additionally, the study highlighted the importance of activating "What-If" simulation scenarios to test corporate resilience against potential shocks and integrating flexible accounting systems within the Enterprise Risk Management (ERM) framework to serve as a primary strategic line of defense.