The Role of Forensic Accounting in Enhancing Public Financial Integrity : Study in the Libyan Environment

The Role of Forensic Accounting in Enhancing Public Financial Integrity

Abstract

This study investigates the critical components of applying forensic accounting within Libyan government units and their impact on mitigating financial corruption. Utilizing a mixed-methods approach, this research surveyed 156 professionals across various governmental sectors in Libya from 320 individuals. Key findings reveal that while fraud detection, professional skills, and investigative techniques are perceived as highly important, their current implementation remains limited. Notably, a One-Way ANOVA indicated significant variations in the implementation status of forensic accounting practices across different government unit types, suggesting disparities in adoption and maturity. Specifically, a significant gap exists in the practical application of computer forensics, specialized software, and independent forensic units. Statistical analysis, including multiple regression, demonstrates a significant positive correlation between the effective application of forensic accounting components and a reduction in financial corruption, particularly through enhanced preventive, detective, and systemic impacts. Barriers such as a lack of qualified professionals, political interference, and an inadequate legal framework are identified as primary impediments. The study recommends developing specialized education, strengthening legal frameworks, and fostering international cooperation to enhance forensic accounting efficacy. This research contributes to the understanding of anti-corruption mechanisms in post-conflict states and offers actionable insights for policymakers and practitioners aiming to bolster financial integrity in Libya.