masters thesisIt’s important to every public sector organization to establish the strong internal audit department in order to minimize or eradicate the problem of mismanagement of public resources. Therefore, the objective of this paper is to investigate the impact of internal audit unit in enhancing efficient use of public resources with a case study at Ministry of Finance (MoF) Zanzibar. Under this study, a sample of 50 respondents were selected judgmental from MoF employees so as to obtained required information and the likert scale instrument which was ordered from 1to 5 scores where 1 represents least effect and 5 represent most effect were used to measures the variables of the study. Meanwhile the descriptive analysis, MSexcell and simple calculations by calculator were used to analyze the data where simple frequencies and percentages were created. Findings of the study indicated that before the establishment of internal audit unit there was largely misuse of resources at MoF compare to the time when the internal audit department was established. This also was supported by MoF chief Accountant during interviewed by said that” Now there is compliance of laws and regulations in using physical resources than before, because past resources were used according to leaders judgments”. The study recommended that management in Public sector organization should provide necessary facilities to internal audit department in order to creating a committed work force for better organization performance.