THE INFLUENCE OF INTERNAL CONTROL SYSTEM AND AUDIT TECHNOLOGY ON BUSINESS PERFORMANCE: MEDIATING ROLE OF AUDIT EXPERTISE

Abstract

The current study investigates the impact of internal control systems & audit technology on business performance and financial transparency in the United Kingdom’s retail sector. In an increasingly competitive and regulated environment, retail organizations must adopt effective auditing practices to ensure accuracy, compliance & operational efficiency. This study specifically examines how audit managers’ expertise and decision-making mediate the relationship amid audit practices & organizational outcomes. A quantitative research design was employed, primary data collected through structured questionnaires distributed among employees working in retail organizations across UK. A total of 300 valid responses were obtained using a convenience sampling technique. The statistical analysis was conducted to evaluate the relationships between variables and to test mediating effect of audit expertise. The findings reveal that internal control systems and use of audit technology both have significant positive impact on business performance and financial transparency. Organizations with strong internal controls and advanced technological tools are better equipped to detect the errors, prevent fraud, and enhance reporting accuracy. Furthermore, the study highlights that audit expertise plays a crucial mediating role, as skilled audit managers strengthen the effectiveness of these systems through the informed decision-making and professional judgment.