Digital transformation and its role in improving the quality of financial statements (An applied study on some Libyan commercial banks)

Abstract

This study aimed to measure the impact of digital transformation on improving the quality of financial statements in Libyan commercial banks. The research problem was framed by questions highlighting how digital transformation can contribute to improving the quality of financial statements in some commercial banks, and what role digital transformation plays in enhancing the speed and accuracy of financial statement preparation and reducing accounting errors. To achieve the study's objective, a descriptive-analytical approach was used. A questionnaire was designed and distributed to a random sample of 45 employees in some branches of Libyan banks (Al-Wahda Bank, Al-Jumhouria Bank, and North Africa Bank) in the municipalities of Al-Qarahbulli and Qasr Al-Akhyar. Forty valid questionnaires were returned for analysis, representing a response rate of 88.9%. Statistical analysis of the data revealed a number of results, the most important of which was the positive impact of digital transformation on improving the quality of financial statements. This was achieved by enhancing the relevance and accuracy of financial information, raising the level of disclosure and transparency, accelerating the preparation of financial statements, supporting compliance with International Financial Reporting Standards (IFRS), and strengthening internal control systems and the protection of financial data. The study also proposed a set of recommendations, the most important of which were: The need to develop the digital infrastructure in banks, intensify training programs for employees, enhance information security, unify accounting systems, and update control systems to meet the requirements of the digital banking environment.