Good corporate governance (CG) practices reduce risks for investors and attract foreign investment. Corporate financial reports must be credible and reliable, relevant to enable investors to make sound financial decisions. High quality auditing contributes to investor confidence and for corporations to raise funds. In view of the critical importance of foreign investment flows for Libya‟s economic growth. This paper presents the findings of a study which examined the relationship between audit service quality, CG practices and foreign investor confidence in the Libyan banking sector. Data was collected from a literature review and a web survey, and analysis through the use of descriptive statistics revealed that good CG practices and quality audit services are positively associated with foreign investor confidence in the Libyan banking sector.