The Role of Internal Auditing in Risk Management: A Field Study of the Libyan Iron and Steel Company

Abstract

This study aimed to identify the role of internal auditing in risk management at the Libyan Iron and Steel Company in Misurata, and to determine whether internal auditors at the company are aware of the importance of risk management. It also sought to understand the role of internal auditing in identifying, assessing, and responding to risks. The study employed a descriptive-analytical approach, utilizing a questionnaire as the data collection tool. A comprehensive survey was conducted of all employees involved in internal auditing and risk management, with 40 questionnaires distributed. The data collected was analyzed, leading to several key findings. These included the existence of an effective role for internal auditing in risk management at the Libyan Iron and Steel Company, and a demonstrated awareness among internal auditors of the importance of risk management and its contribution to identifying, assessing, and responding to risks within the company. The study recommended focusing on financial risks and their control through an integrated internal audit approach that considers both internal and external factors affecting the company. Likewise, to meet the development of the internal auditor, consideration should be given to (monitoring the level of risks surrounding the work, putting in place the necessary control procedures to control risks, evaluating the efficiency of the internal audit methodology in accordance with achieving the specific objectives related to identifying and controlling the risks facing the company in all its forms and (choosing the appropriate tools).