ABSTRACT The study was carried out on internal audit and reliability qffinancial accountability in local governments in uganda looking at Amolatar District Local Government as the cave study The objectives qf the research were to investigate the level qf internal audit, examine the level of accountability qf public finances and establish the relationship between internal audit and financial accountability in Amolatar District Local Government. The study adopted a cross sectional research design to collect data from respondents and targeted 15 respondents from accounts and finance department. 10 from internal audit. another 10 from procurement and stores department. 6 from budgeting and planning department and 4 departmental heady also known as key iflformants. Findings revealed that the L4 department ofADLG is still weak since audit stqffc lack adequate competent skills and resources to conduct audit.t Findings also showed that accountability for public finances in Amolatar District Local Government is characterized by untimely reporting. lack qf concern ,/br value fbr money while incurring expenditures and poor quality documentation. Pearson ‘A’ correlation results revealed ci signjficant positive strong relationship betii’een IA and financial accountability in Amolatar Dtvtrict Local Government. However the predictor qfaccountability in Amolatar District Local (Joi’ernment was found to he competence qf audit stqfl’ and availability qf resources fOr conducting audit.v. Basing on (he research fincling.s~ there is therefore need ,/br A DLG mcmncigemnent to improve on the competence Itheir internal auditors and atvo to establish accountability redluiremnents with strict penalties fOr failure to cicccnint ,fOr i~ublic./unciv so as to attain an improved level qf/inancial accountability