The effect of internal control system on financial and non-financial performance in retailing sector: D&R example

The aim of this study is to explain the effect of internal control system on financial and non-financial performance in the retailing sector through COSO internal control components and D&R stores.The study also aimed to examine whether the perceptions of the effectiveness of the internal control system and its impact on financial and non-financial performance differ according to demographic characteristics. Therefore, the first hypothesis of our study was formed that the internal control system has a positive and significant effect on the financial and non-financial performance perception of the store. In addition, the fact that the perceptions of the effect of the internal control system on the financial and non-financial performance of the store did not differ according to demographic characteristics formed the second hypothesis of our study. The data of the study were collected by using the quantitative survey method based on the descriptive survey model. The population of the study consists of all employees of D&R (1540 people) and the sample consists of 302 employees who answered the questionnaire. The analysis of the obtained data was carried out with the SPSS 22.0 computer program. Correlation test and Regression test were used for Main Hypothesis 1 of the study. T-test, Analysis of Variance and Post-hoc (Scheffe) Test were used for Main Hypothesis 2.As a result, COSO integrated internal control system and its main components have a positive and significant effect on store performance perception.In addition, it was found that the perception of the effect of the internal control system on the financial and non-financial performance of the store differs according to the demographic characteristics, rejecting the 2nd hypothesis. In this direction, it was revealed that there are differences in the perceptions of the employees in terms of gender, title and professional experience, and there is no difference according to age and educational status.