The Impacts of Internal Control Practices on Financial Accountability in Islamic Non-Profit Organizations in Malaysia

International Journal of Economics, Management and Accounting, 26(2), 365-391, 2018

27 Pages Posted: 11 Jan 2019

See all articles by Muhammad Iqmal Hisham Kamaruddin

Muhammad Iqmal Hisham Kamaruddin

Universiti Sains Islam Malaysia (USIM)

Nathasa Mazna Ramli

Universiti Sains Islam Malaysia (USIM)

Date Written: 2018

Abstract

This study aims at examining the impacts of internal control practices on financial accountability in Islamic non-profit organizations (NPOs) in Malaysia. Thus, this study applies an explanatory case study method to analyze intervention of life events which form the internal control practices. For data collection, this study used a shorter case study interview with interview protocol questions developed from the literature review. For reporting, this study adopted a multiple-case study format combining all three cases into a single report. As a result, this study identified significant interrelation impacts between internal control practices and financial accountability by Islamic NPOs in Malaysia under three aspects: (i) financial accountability ‘for what’ – internal control as part of financial accountability process; (ii) financial accountability ‘on how’ – internal control discharged financial accountability through financial disclosure; and (iii) financial accountability ‘to whom’ – internal control supports Islamic NPOs to gain both power (khilāfah) and trust (amānah) from stakeholders. Therefore, this study is among the few studies that examine the internal control practices especially their impacts on financial accountability of Islamic NPOs in Malaysia.

JEL Classification: M41

Suggested Citation

Kamaruddin, Muhammad Iqmal Hisham and Nathasa Mazna Ramli, The Impacts of Internal Control Practices on Financial Accountability in Islamic Non-Profit Organizations in Malaysia (2018). International Journal of Economics, Management and Accounting, 26(2), 365-391, 2018, Available at SSRN: https://ssrn.com/abstract=3308237

Muhammad Iqmal Hisham Kamaruddin (Contact Author)

Universiti Sains Islam Malaysia (USIM) ( email )

Bandar Baru Nilai
Nilai, 71800
Malaysia

Nathasa Mazna Ramli

Universiti Sains Islam Malaysia (USIM) ( email )

Bandar Baru Nilai
Nilai, Negeri Sembilan 71800
Malaysia
606 7986302 (Fax)

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