A Dissertation Submitted in Partial Fulfilment of the Requirements for the Degree of Master of Science in Human Resource Management (MSc HRM) of Mzumbe University.The introduction of corporate governance in modern day business was realized after the collapse of a number of large multinational companies such as the Enron, Tycon and WorldCom in the early 2000s. The reasons for corporate collapse were weaknesses in governance practice in relation to internal control systems, financial reporting quality and audit quality. The importance of corporate governance in ensuring effective stewardship of public resources has influenced my decision on this area of study namely: “examining the effectiveness of internal control systems in ensuring good corporate governance to organisation”. The study used simple sampling techniques whereby interviews, questionnaires, observation and documentary review for data collection; it also applied qualitative and descriptive research approaches to analyze data and interpret results. The research findings indicate that an effective internal control system provides reasonable, but not necessarily 100% assurance for the safeguarding of assets, the reliability of financial information, and compliance of laws and regulations. Therefore the cost of control systems should not exceed the benefit to be derived from them. Also the findings indicate that the internal auditing functions face many challenges during implementation of daily responsibilities. These challenges include lack of sufficient resources, lack of independence, non implementation of auditors’ recommendations, and lack of co-operation from management and other stakeholders. The findings of respective managements in organizations covered, which maintain effective internal audit functions, show transparency, honesty and readiness to be accountable for wrong doing including unethical practices. The result of the research showed that the organizations which have installed weak internal control systems, have systems that cannot guarantee effective implementation in promoting good governance practice.