The effect of audit on financial decisions: An application in Libya

The auditor's report and opinions affect financial decisions related to the business. It is possible to make more rational decisions by examining the effect of business management on financial decisions. The study examines the impact of internal audit on financial decision making. Data was collected from 146 people working in universities, public institutions and public institutions in Libya by survey method. Then, findings related to exploratory factor analysis, confirmatory factor analysis, reliability analysis, normal distribution test, correlation analysis and structural equation model related to the construct validity and reliability of the scales used in the research were included. As a result of the analysis of the structural equation model, it was found that internal audit positively affects decision making. This finding means that if internal audit increases by one unit, decision making will increase by 0.671 units. As a result of the analysis, it was found that the perception of internal audit and decision making did not differ significantly from the duration of professional experience. As a result of the analysis, it has been determined that internal audit and decision making show significant differences according to the educational level. According to the results of the analysis, the perception of internal audit varies significantly between graduate graduates and high school and university graduates. The difference is in favor of graduate graduates since the average response value is higher among graduate graduates. Decision-making perception shows a significant difference between graduate graduates and high school graduates. Key Words: Auditing, Internal Auditing, Decision-Making, Financial Decision, Libya. 2020, 66 Pages