Abstract: This study aims to examine and analyze the influence of auditor’s competence and independence on the internal audit effectiveness. Achievement of the internal audit effectiveness is a form of application principles of accountability and transparency on the use of public funds by higher education institutions in Indonesia. The unit of analysisof this study is an internal auditorat public universities in Malang who participated in the internal audit process. Total population in this study are 37 respondents. This study uses as a turation sampling. The resultsof research the auditor’s independence are not significant affect on the internal audit effectiveness while the auditor’s competence significantly influence the internal audit effectiveness.