A Research Report Submitted to Mzumbe University – Mbeya Campus College in Partial Fulfillment of the Requirements for Award of Bachelor Degree of Accounting and Finance (BAF- BS) Of Mzumbe University.This study focused on effectiveness of internal audit in Mkwawa University .The study was conducted at Mkwawa University. Three specific objectives guided the researcher during the study; to determine the scope and objective of Internal Audit; to find out the effectiveness of internal audit in Mkwawa University, and to identify the challenges in effective functioning of internal auditing. The sample size is composed of 19 members, seven from internal audit department, nine from Finance department and three from Procurement department. Data collection methods which were used in this study are observation, questionnaires, and documentary review. Both qualitative and quantitative methods were used in data analysis of the study. The results of the study showed that the objective and scope of internal audit in Mkwawa University is to assist all parts of management in the effective discharge of their responsibilities by furnishing them with analyses, appraisal, recommendation and expressing an opinion on the activities reviewed facts. Also, the researcher found that management action is effectiveness of internal audit in Mkwawa University. Through the findings of the study the researcher came out with the following recommendations In order for the internal auditors to perform their roles in effective way and to be competent, they are encouraged to keep abreast of current developments in auditing standards, procedures and techniques by attending relevant seminars and reading audit literature, also to qualify into C.P.A (T) and attending different courses offered by NBAA.