The report focuses on the Effectiveness of Internal Auditing in Public Organizations in Tanzania, The case of Tanzania Ports Authority. The research was conducted at Dar es Salaam Port. The study aimed at revealing whether TPA has an effective internal audit unit. It further examined activities that the internal auditors perform in TPA, bring into light the factors that contribute to the effectiveness of internal audits and find out the advisory roles of the internal auditors. The study was of interest to the researcher due to the fact that the need for financial accountability has existed ever since it became necessary for one individual to entrust the care of his or possessions or business to another. In both private and public sector, the providers of economic resources are separate from the management of the organizations or the institutions. The owners therefore, required the management to account for their stewardship in the running of the organizations or the institutions. The sample size was sixty (60) respondents and three data collection methods were used namely questionnaire, interview and personal testimony. The findings indicated that internal controls of the internal audit unit in TPA focus mainly on the traditional paradigm of internal audit functions that focuses on compliance with laws and regulations, evaluating accounting errors and fraud rather than addressing risk management and productivity. It was further revealed that internal auditors play advisory roles such as good corporate governance, unethical practices and corruption, designing and implementing internal controls and very tiny role in risk management and sound business practice. The structure and the organizational settings of an organization are restricting the roles of the internal auditors in delivering their services. They are partially allowed access to audit evidences and an organization does not have clear policies and procedures for internal auditors. Management perceived them as fault –finders and the units are given low status in an organization.

A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Accounting and Finance (MScA&F) to Mzumbe University.