Interplay of Operational Audit Practices, Sustainable Audit Methods, Training Quality and Operational Leak Prevention

Abstract

Operational leaks remain a major concern for distribution companies due to their effects on efficiency, cost management, regulatory compliance, and environmental sustainability. This study examined the factors influencing operational leak prevention in a distribution company in Misamis Oriental, guided by Stakeholder Theory, which emphasizes ethical and transparent practices to protect stakeholder interests and organizational legitimacy. Using a descriptive-correlational design, data were gathered from 200 employees through an adapted five-point Likert scale questionnaire. Statistical tools included descriptive statistics, factor analysis and canonical correlation analysis (CCA). Findings revealed high employee perceptions across all variables, indicating that structured operational controls and sustainability-driven practices are actively implemented. Results showed that riskbased compliance auditing, integrated sustainability initiatives, and effective employee training work synergistically to minimize operational leaks. Canonical loadings (CCA) further demonstrated that consistent auditing enhances inventory control, reduces spoilage, and minimizes operational errors, supporting the rejection of the null hypothesis. The study highlights the importance of sustainable audit methods in improving operational efficiency, reducing errors, and promoting responsible resource utilization. Overall, the findings provide both empirical and practical insights for distribution companies in emerging markets aiming to improve sustainability and operational performance. Future research may explore additional factors such as organizational culture, employee engagement, and technological integration using longitudinal or mixed-method approaches.