Abstract

Objectives: The study aims to examine the impact of internal control auditing on the integration between financial reporting and financial statement auditing by: analyzing the degree of integration between internal and external auditing, measuring compliance with internal control requirements, and assessing the effect of financial reporting quality on investor confidence and the business environment. Methods: The study adopted the descriptive-analytical methodology to examine the phenomenon by reviewing the effectiveness of internal control mechanisms in corporations, preparing high-quality financial reports based on transparent and reliable financial data, and assessing financial behavior. Results: The results indicated that the alignment between external auditing and internal control, supported by effective regulatory mechanisms, enhances shareholders' and investors' confidence in financial reports. Moreover, the responsibility of the Boards of Directors of the two telecommunications companies for ensuring the accuracy and integrity of these reports was found to be high, as reflected in the integration axis between reporting and data auditing, with an overall relative weight of 78.86%. Conclusions: The study recommended the importance of enhancing integration between internal and external auditing in Libyan service companies, and strengthening trust and transparency between them. It also emphasized the necessity of ensuring the independence of internal control in Libyan telecommunications companies.