INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD

Abstract: This study stems from the radical transformation brought about by digital technology in business, production, and consumption models. The research primarily aims to explore the extent to which digital transformation contributes to reducing the phenomenon of "earnings management" within the telecommunications sector, specifically at Libyana. The study's significance lies in assessing how digital systems can enhance the transparency of financial statements and mitigate the "information asymmetry" that management might exploit to direct reported profits toward specific objectives. The research problem stems from the complexity of operational processes and the magnitude of investments in telecommunications companies, which can open the door to accounting manipulation. To answer these questions, the researcher employed a descriptive-analytical approach and collected data through a questionnaire distributed to a sample of Libyana employees (42 valid responses), representing diverse specializations such as computer science, accounting, and management. The study concluded that digital transformation is not merely replacing paper with screens, but rather an integrated control system that limits management's ability to practice "earnings management" thanks to real-time tracking systems and high transparency in the presentation of financial statement figures.