The mismanagement of public funds and failure to adhere to established procedures are persistent challenges in the public sector. This paper examines the role of supply-side accountability in ensuring that individuals entrusted with public funds adhere to procedures for the benefit of society. High-quality financial reporting is a key mechanism for achieving this accountability, and internal audit plays a crucial role in enhancing the quality of financial reporting. In particular, the paper assesses the impact of internal audit practices on the quality of financial reporting in Tanzanian public institutions. A correlational research design was adopted, and quantitative data were collected through structured questionnaires administered to 160 respondents from selected public organizations in Tanzania. Regression analysis was used to examine the relationships between the dependent variable (financial reporting quality) and independent variables (internal audit practices). The results indicate that four internal audit variables: management support, organizational independence, staff competence and the audit committee, significantly improve the quality of financial reporting. The study highlights the importance of management support for internal audit functions, emphasizing the recruitment of sufficient and qualified internal auditors to address staffing shortages and ensure effective operations. To further enhance internal audit practices, organizations should implement training programs and embrace digital transformation. These measures can strengthen internal audit’s contribution to accountability and financial reporting in the public sector by ensuring that public funds are managed responsibly and in compliance with established procedures