Dissertation (MA Business Administration)This study was established to assess the contribution of technology on internal audit in the public sector. The study has examined the perceptions of audit officers in application of information technology in audit issues, explored the contribution made by IT in implementing audit activities and investigated on the challenges facing the application of IT in internal audit issues in the public sector. The research used a case study methodology where multiple cases were taken and collected data and information using questionnaire, direct interviews and documentations. Participants involved in the study were management of the Chamwino district council and Dodoma Municipality, internal auditors and accountants. The collected data and information were mainly analyzed using explanation building and pattern matching. The study identified that all the respondents agreed that that the auditors in the public sector are happy with IT audit because it assists them more than manual audit. Further, the study revealed that the IT audit is important in all audit activities. This is explained by its contributions such as; easier to track error and mistakes, helps to control fraudulent actions, easy to arrive into best opinion, mitigates risks, provides more accurate results and is cost effective and time consuming. Furthermore, the study observed that lack of experienced and skilled personnel, shortage of work force; problems arising from the use of Epicor, management perceptions over internal auditors, lack of IT policy that limits system accessibility and unreliable electric power supply are likely to impede the application of IT in internal audit issues. The study recommends that more staff should be employed, more training should be provided to staff, and staff should be sensitized to follow policies in the public sector. In addition, the management is advised should do away with the culture of perceiving internal audit as a police unit. It should look at it as a friend in providing vital information for decision making. Moreover, the central government is requested to take a lead in ensuring that the IT policy is put in place.