ABSTRACT

This study examines internal audit practices and challenges in selected private limited companies in Fako, Southwest Cameroon. Internal audits play a crucial role in ensuring financial integrity, risk management, and compliance within organizations. However, private companies in Cameroon often face various challenges in implementing effective internal audit systems. The research seeks to identify the common practices employed by these companies, as well as the key obstacles they encounter in conducting internal audits.

A mixed-method approach was used, combining qualitative interviews with audit personnel and quantitative surveys from financial officers in selected companies. The interviews aimed to understand the internal audit processes, audit standards followed, and the scope of audits conducted. The surveys assessed the effectiveness of these practices, the challenges encountered, and the overall impact on financial management. The study also reviewed literature on internal auditing, with a focus on practices in developing economies and the specific context of private companies in Cameroon.

The findings reveal that most private companies in Fako implement internal audits but face several challenges. The primary issue is the lack of adequate resources, including skilled audit staff and modern audit tools. Many companies rely on small audit teams with limited training, which affects the quality and scope of audits. Another challenge is the lack of management support, as some companies view internal audits as a regulatory formality rather than a strategic function. Additionally, there is often a lack of compliance with international audit standards, which further compromises audit effectiveness. The study also identified issues with transparency, as some companies hesitate to fully cooperate with internal audit processes, fearing exposure of financial mismanagement.

The study concludes that addressing these challenges is essential for improving internal audit practices in private companies in Fako. Recommendations include investing in staff training, adopting modern audit technologies, and ensuring management understands the value of internal audits. Establishing stronger compliance with international audit standards and promoting a culture of transparency will also enhance the effectiveness of internal audits in these companies.

Keywords: internal audit, private companies, audit practices, audit challenges, Fako, Southwest Cameroon, financial management, compliance.