var app = angular.module('plunker', []);

app.controller('MainCtrl', function($scope, $element) {
      /*$scope.audit.lob = {   
            "type": "select",
            "name": "Service",
            "value": "-SELECT-",
            "values":['-SELECT-','TRAVEL','CARGO','AIRPORT','TRANSGUARD']
     };*/
     
     
     $scope.audit_lob = [
           {"type": "select","name": "Service","value": "-SELECT-","values":['-SELECT-','TRAVEL','CARGO','AIRPORT','TRANSGUARD']
     }];
     
     $scope.lobs = [   
            {type: "select",name: "Service",value: "-SELECT-",values:['-SELECT-','TRAVEL','CARGO','AIRPORT','TRANSGUARD']}
     ];
});
<!DOCTYPE html>
<html ng-app="plunker">

  <head>
    <meta charset="utf-8" />
    <title>AngularJS Plunker</title>
    <link rel="stylesheet" href="http://code.jquery.com/ui/1.10.3/themes/smoothness/jquery-ui.css" />
    <link rel="stylesheet" href="style.css" />
    <script src="//ajax.googleapis.com/ajax/libs/jquery/1.10.2/jquery.min.js"></script>
    <script src="https://ajax.googleapis.com/ajax/libs/angularjs/1.1.5/angular.js" data-semver="1.1.5"></script>
    <script src="app.js"></script>
  </head>

  <body ng-controller="MainCtrl">
<!--
<select id="lob_id" class="set-width"
        ng-model="audit.lob.value"
        ng-options="lob for lob in audit.lob.values"
        name="lob" required>
</select> 
-->

<select id="lob_id" class="set-width"
        ng-model="myValue1"
        ng-options="lob.values for lob in audit_lob"
        name="lob" required>
</select> 

<label>Lob
    <select ng-model="myValue" ng-options="lob.values for lob in lobs"></select>
  </label><br/>
    
  </body>

</html>
/* Put your css in here */