Dissertation (MA Accounting and Finance)In Tanzania, internal auditing is relevant for the expansion of work and responsibilities of the parastatal organisations. However, it is argued that many internal auditors are not independent and lack relevant skills and management support for carrying out internal audit duties and assignments effectively. Therefore, this study examines the influence of internal auditing on the effectiveness of corporate Governance in parastatal organisations found in Dodoma City, Tanzania. The study was conducted in Dodoma City using 120 respondents who participated in the study through questionnaire and interviews. The data were analysed using multiple regressions and varimax rotation with Keiser normalization. The findings showed that internal auditing in the corporate governance is not adequately performed. There is limited independence of internal auditors, presentation of internal audit function, and the performance of other duties do not match the capability of the internal auditors to function independently. In specific, internal auditing and auditing reports are not regularly issued. Further, many of the staffs are computer literate but could not run internal as required. Based on these findings, it is suggested that the capacity of the internal auditors should be developed and given enough freedom to perform internal auditing skillfully and professionally.