Interaction Between the Audit Committee and the Internal Audit Function to Enhance Corporate Governance : A Case Study of the Libyan Banking Sector

English Abstract: The study aims to expand the literature by providing exploratory evidence on the factors associated with the interaction between the audit committee and the internal audit function to strengthen corporate governance, as well as exploring the obstacles that prevent this interaction, and then identifying ways that enhance the interaction between these two mechanisms in the Libyan banking sector. To achieve these aims, the questionnaire method was used to collect data from the study participants through a survey of four groups (board members, audit committee members, internal auditors, and bank managers), who are familiar with the process of interaction between the audit committee and the internal audit function to enhance corporate governance. The findings of the study indicate that there is an interaction between the audit committee and the internal audit department of the Libyan banking sector. These findings show that this interaction is achieved through a number of ways, including the review of the Audit Committee the internal audit's objectives, plan and functions, ensuring the necessary resources to carry out its tasks, and the audit committee's reliance on internal auditors to obtain the reports and information necessary to perform its role. The findings also indicate that there are obstacles that limit this interaction between these two mechanisms, including the lack of direct meetings between the audit committee and the director of the internal audit, and the failure of audit committees to devote considerable time and effort to the work of internal auditors. The findings of the study will not only contribute to the academic debate but will also address the information gap by offering a new perspective from a developing country that is culturally, socially and legally different from other countries, which can help to understand the role that the audit committee and the internal audit department play in the process of interaction and cooperation between them. Furthermore, the findings of the study will help regulators, government and shareholders in Libya to pay greater attention to this interaction to strengthen corporate governance in the Libyan banking sector