Accounting and Accountability in The Sacred Context: The Case of A Malaysian Cash Awqaf Institution

H Yaacob, HS Nahar - … of 9th Annual International Conference on …, 2011 - papers.ssrn.com
Proceedings of 9th Annual International Conference on Business …, 2011papers.ssrn.com
The concept of accountability has long been argued to have contextually ingrained in the
technical processes of accounting and reporting. The sacred religion of Islam as a social
order with a complete code of life classifies accountability as being dual, in line with the
duality concept in life–in this temporal world and eternal hereafter, necessitating for
accountability concept in accounting and reporting from the Islamic worldview to transcend
beyond the point of worldly objectives. Parallel to this line of reasoning, this study undertake …
Abstract
The concept of accountability has long been argued to have contextually ingrained in the technical processes of accounting and reporting. The sacred religion of Islam as a social order with a complete code of life classifies accountability as being dual, in line with the duality concept in life–in this temporal world and eternal hereafter, necessitating for accountability concept in accounting and reporting from the Islamic worldview to transcend beyond the point of worldly objectives. Parallel to this line of reasoning, this study undertake an empirical investigation with respect to accounting, reporting and accountability practices of a Malaysian cash awqaf (Islamic endowment) management institution for the extended six years period running from 2000 to 2005. The paper uses triangulation research approach, consisting of case study method and archival documentation review and analysis. The findings indicate that, while the root of accountability in the management, accounting and reporting practices seems to exist in awqaf entity studied, significant improvements remain necessary to ensure accountability could be continuously enhanced and uphold. Debating accountability concept in the context of management, accounting and reporting as practiced by faith based institution of awqaf from the Islamic perspective inevitably directs this study to highlight the notion of Islamic accounting and reporting commonly and extensively discussed in the realm of Islamic finance and banking. The study further contributes to the accountability and financial reporting literature in Islamic, not-for-profit organizations by studying the importance of sound accounting practices and reporting transparency in ensuring accountability.
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