Abstract

The implementation of IFRS9 as with any structural change to accounting policies requires a strategic development and implementation, and a concerted effort from many departments. This paper investigated the role of internal auditors at Lebanese banks in the implementation of accounting standards. The local banking system is surveyed in a targeted manner to test for significant shortcomings in the ideal strategic implementation of IFRS 9 by internal auditors. This is done by constructing a tailored survey based on the defined role of the internal auditor by regulatory agencies, external auditors, and by international standards with special attention to IFRS 9. The findings suggested that internal auditors in Lebanon did perceive themselves as having the required knowledge for the implementation and on the other hand would have benefited from an implementation plan with an emphasis on strategic synergies between key departments. In a final note, the study found that the implementation of IFRS 9 could find a value added strategic role of the internal auditor if the process of feedback and control started at the front office.

Key words: Internal audit, audit function, IFRS 9, implementation, Lebanon.