THE MEDIATING Effect of Internal Audit Between Corporate Governance and Business Sustainability among Cooperatives in REGION XI

Abstract

Achieving sustainability transcends mere operational efficiency and economic viability for cooperatives. These organizations recognize that ensuring social and environmental sustainability is integral to their long-term success and the well-being of their members. The purpose of this study was to determine the mediating effect of internal audit between corporate governance and business sustainability. The study utilized quantitative, descriptive correlational research design and mediation technique using sobel z-test, with 300 cooperative employees chosen as the respondents selected through stratified random sampling. Results revealed that the level of business sustainability and corporate governance were very high while internal audit was high. There was a significant and positive correlation between corporate governance and business sustainability, corporate governance and internal audit, and internal audit and business sustainability. Internal audit partially mediated the relationship between corporate governance and business sustainability. About 94.88 percent of the total effect of corporate governance on business sustainability goes through internal audit and about 5.12 percent of the total effect is either directly or mediated by other variables not covered in the model.