The Extent to Which the External Auditor Is Aware of the Inherent Risks and Their Impact on Financial Reports (An Empirical Study in the Libyan Audit Bureau)

Mr. Osama Ibrahim Faraj Hussein / Mr. Salam Muhammad Othman Al-Taish

This study examines the extent to which external auditors are aware of inherent risks and their impact on financial reports. The study addresses the problem that a lack of auditor awareness regarding inherent risks might lead to issuing audit reports that do not fairly present the financial statements. Utilizing a descriptive-analytical approach, data was collected via questionnaires distributed to auditors at the Libyan Audit Bureau. The findings indicate a high level of awareness among external auditors regarding the significance of inherent risks and the procedures required to mitigate them. The study recommends enhancing auditors' professionalism, experience in evaluating alternatives, and their understanding of accounting and internal control systems.

External Auditor, Inherent Risks, Financial Reports, Libyan Audit Bureau, Audit Procedures