A Study on International Public Sector Accounting Standards (IPSAS) and the Quality of Accounting Information in Libyan Government Sector

Abstract

The purpose of this study was to investigate the influence of applying International Public Sector Accounting Standards (IPSAS) on accounting information quality. Recent research has found positive outcomes in IPSAS and accounting information quality (Bakhtah & Ammar, 2019). However, because IPSAS is a new product, there is still a lot to learn and explore about it. In Libya's government sector, the study population included a number of board directors, non-audited members, internal auditors, accountants, and department heads from various departments of government. They were given 400 questionnaires, and their responses were analysed with SPSS and PLS-SEM. The four independent criteria (ensuring good governance, disclosure, board of directors’ responsibilities, and the preservation of shareholder rights) had a significant impact on the quality of accounting information among Libyan bank workers. The authors suggest a future study agenda and highlight contributions to knowledge, namely auditing literature and accounting information quality literature. The findings indicate that the implementation of IPSAS will have an impact on an external audit in Libya. External audit reports are standardised by IPSAS, and external audit notes are influenced by it. Following the deployment of IPSAS, Libyan audit firms will collaborate with global audit firms to gain experience auditing IPSAS-prepared financial statements. This will strengthen the external auditors' judgments and knowledge of global accounting standards. Keywords: Governance, Disclosure, IPSAS, Government, Quality of information, Accounting