A case study of internal control practices in Islamic non-profit organizations in Malaysia

This paper presents the current internal control practices of Islamic non-profit organizations in Malaysia. This study employs comparative case study method by using interview for its data collecting approach. Three Islamic non-profit organizations with similar characteristics were selected as sampl...

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Main Authors:	Muhammad Iqmal Hisham Kamaruddin, Nathasa Mazna Ramli
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11963/ http://journalarticle.ukm.my/11963/ http://journalarticle.ukm.my/11963/1/16328-62474-1-PB.pdf

id	ukm-11963
recordtype	eprints
spelling	ukm-119632018-07-26T01:19:45Z http://journalarticle.ukm.my/11963/ A case study of internal control practices in Islamic non-profit organizations in Malaysia Muhammad Iqmal Hisham Kamaruddin, Nathasa Mazna Ramli, This paper presents the current internal control practices of Islamic non-profit organizations in Malaysia. This study employs comparative case study method by using interview for its data collecting approach. Three Islamic non-profit organizations with similar characteristics were selected as samples for this study. Findings showed that several similarities in internal control practices aspects such as segregation of duties, authorisation of transactions and documentation of records in the organizations. Different practices were also identified, especially in physical control over assets and records and independent checks on performance aspects. The study found inadequate physical control over assets and records, such as installation of alarm and CCTV camera, hiring a guard over premises and also a barrier to financial documentations and room. Also two out of three Islamic non-profit organizations did not practise internal audit processes for independent checks on performance. Based on these findings, several suggestions were highlighted for improvement. This paper also identified issues and challenges in the internal control practices, such as lack of financial staff, low equipped physical control tools, not assigning internal auditor for frequent review over operation purposes and financial limitation. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11963/1/16328-62474-1-PB.pdf Muhammad Iqmal Hisham Kamaruddin, and Nathasa Mazna Ramli, (2017) A case study of internal control practices in Islamic non-profit organizations in Malaysia. Asian Journal of Accounting and Governance, 8 . pp. 13-25. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1033
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This paper presents the current internal control practices of Islamic non-profit organizations in Malaysia. This study employs comparative case study method by using interview for its data collecting approach. Three Islamic non-profit organizations with similar characteristics were selected as samples for this study. Findings showed that several similarities in internal control practices aspects such as segregation of duties, authorisation of transactions and documentation of records in the organizations. Different practices were also identified, especially in physical control over assets and records and independent checks on performance aspects. The study found inadequate physical control over assets and records, such as installation of alarm and CCTV camera, hiring a guard over premises and also a barrier to financial documentations and room. Also two out of three Islamic non-profit organizations did not practise internal audit processes for independent checks on performance. Based on these findings, several suggestions were highlighted for improvement. This paper also identified issues and challenges in the internal control practices, such as lack of financial staff, low equipped physical control tools, not assigning internal auditor for frequent review over operation purposes and financial limitation.
format	Article
author	Muhammad Iqmal Hisham Kamaruddin, Nathasa Mazna Ramli,
spellingShingle	Muhammad Iqmal Hisham Kamaruddin, Nathasa Mazna Ramli, A case study of internal control practices in Islamic non-profit organizations in Malaysia
author_facet	Muhammad Iqmal Hisham Kamaruddin, Nathasa Mazna Ramli,
author_sort	Muhammad Iqmal Hisham Kamaruddin,
title	A case study of internal control practices in Islamic non-profit organizations in Malaysia
title_short	A case study of internal control practices in Islamic non-profit organizations in Malaysia
title_full	A case study of internal control practices in Islamic non-profit organizations in Malaysia
title_fullStr	A case study of internal control practices in Islamic non-profit organizations in Malaysia
title_full_unstemmed	A case study of internal control practices in Islamic non-profit organizations in Malaysia
title_sort	case study of internal control practices in islamic non-profit organizations in malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11963/ http://journalarticle.ukm.my/11963/ http://journalarticle.ukm.my/11963/1/16328-62474-1-PB.pdf
first_indexed	2023-09-18T20:01:32Z
last_indexed	2023-09-18T20:01:32Z
_version_	1777406881774436352

A case study of internal control practices in Islamic non-profit organizations in Malaysia

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