THE EXTENT TO WHICH THE LIBYAN EXTERNAL AUDITOR COMPLIED WITH INTERNATIONAL STANDARD 240 ON FRAUD: (AN APPLIED STUDY ON THE AUDIT OFFICES REGISTERED IN THE CENTRAL BANK OF LIBYA AND THE LIBYAN STOCK MARKET)

Abstract

The aim of this study is to identify the aspects of professional responsibility, to the Libyans' External Auditor, for the detection of fraud in the financial statements through the evaluation of the Libyan External Auditors’ commitment to the International Auditing StandardISA240.In order to achieve the objectives of the study, the researchers followed the deductive approach, and the data collection method was a questionnaire, which was distributed to the External Auditors registered with Central Bank of Libya and the Libyan Stock Market. The researcher used the statistical descriptive methods to describe the trend and views of the study Participants, extract the arithmetic mean and the standard deviation of the data as well as the measurement of the consistency and stability of the questionnaire in addition to the use of the One Samples T-Test to examine the hypotheses of the study.The study showed a number of results. The most important one is that The Libyans External Auditors are highly committed to the International Standard of Audit ISA 240, for detection of fraud. The researchers recommend the adoption of the International Standards of Auditing by the Libyan Accountants and Auditors Association and order The Libyan External Auditors to comply with them.