The effectiveness of internal audit function in development projects in Tanzania: the case of Tanzania social action fund ( TASAF )

International Audit has long been a part of good cooperate governance. To achieve this potential, however, an internal audit must show superior levels of performance and effectiveness. The purpose of this study was to determine the effeteness of internal audit function on activities supported by Tanzania social action. Fund ( TASAF ) project. This including examining major challenges facing local Government Authority ( LGA ) Internal Auditors (IAs ) when undertaking audit in TASAF supported activities, factors affecting the effectiveness of Internal audit function and suggestions on how to maximize Internal Audit effectiveness. The study was conducted by way of a survey. Eighty four ( 84 ) questionnaires were distributed, and sixty three useable questionnaires were received back. The collected data was statistically analysed using SPSS tool. The study results indicate that Internal audit function to be carried according to internal audit standards. Nevertheless, there are hindrances to effectiveness of Internal Audit function such as shortage of internal audit staff, financial resources and working tools for audit staff, financial resources and working tools for audits, and lack of experience by some IAs in auditing projects at community level. Hence, the research`s recommendations for improving effectiveness of Internal audit Function in LGAs, management to adequately support to Internal audit Function, fostering organizational independency for Internal audit functions and clearly stating reporting mechanisms by Internal audit functions.