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

  • Muhammad Iqmal Hisham Kamaruddin Universiti Sains Islam Malaysia
  • Nathasa Mazna Ramli Universiti Sains Islam Malaysia
Keywords: Internal control, Islamic non-profit organization, Financial accountability, Islamic social accounting

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.

Author Biography

Nathasa Mazna Ramli, Universiti Sains Islam Malaysia

Senior Lecturer

Faculty of Economics and Muamalat

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Published
2018-12-28
How to Cite
Kamaruddin, M. I. H., & Ramli, N. M. (2018). 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. Retrieved from https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/321
Section
Articles