Zakat on income is one of the emerging issues among Syariah scholars where they might have varying opinions regarding it. The aim of this paper is to identify factors that may influence the Muslims behaviour towards zakat on income. Academicians from three faculties in the International Islamic University Malaysia (IIUM) were used as sample in this study. They were sent self-developed questionnaires requiring them to indicate their level of agreement on certain factors which might influence them in paying zakat on income. Based on the mean ranking of those who pay zakat, the findings suggest that social, religious and economic factors prevail over the other relatively 'self-centered' factors. This study concludes by suggesting that there is a need for proper education on zakat which may eventually help the Ummah to benefit from the noble system of zakat.

This paper focuses on the need to harmonize the practice of zakat on companies throughout Malaysia by implementing a zakat accounting standard (ZAS). The objectives of this paper are fourfold: (1) to highlight the current practice of zakat on companies in Malaysia; (2) discuss the usefulness of AAOIFI FAS 9, MASB FRS i-1, and MASB TR i-1 as guidelines for developing a ZAS; (3) suggest a collaboration by various parties designed to pool initiatives, knowledge, and skills to develop a useful and favorable ZAS; and (4) to demonstrate that without proper education and a strong political will, there is a little hope of making any ZAS a reality.

Purpose -Auditor independence is fundamental to public confidence in financial reporting and the auditing profession. The study aims to provide further understanding of the factors influencing auditor independence from the perspective of commercial loan officers. Loan officers formed the sample as they are relatively sophisticated financial statement users who would understand the importance of audit report and the issues related to auditor independence. Design/methodology/approach -The study examines the perceptions of commercial loan officers in Malaysian-owned commercial banks and a total of 86 officers responded to the self-administered questionnaire.Findings -Results indicate that smaller audit firms, audit firms operating in a higher level of competitive environments, audit firms serving a given client over a longer duration, larger size of audit fees, audit firms providing managerial advisory services, and, the non-existence of an audit committee, are perceived as having a higher risk of losing independence. Audit firm size appears to be the most important factor that affects the auditor independence, followed by tenure, competition, audit committee, audit firms providing managerial advisory services and size of audit fee. Originality/value -The paper provides important insights into the factors affecting auditor independence and contributes towards better understanding on the ways to improve the confidence in financial reporting and credibility of the auditing profession.

Independence is the primary justification of the existence, and thus the hallmark of the auditing profession. It is recognized as the primary attribute to be maintained by auditors in all circumstances. This study attempts to explore the determinants of auditor independence as perceived by Malaysian accountants using a self-administered mail survey. It was evidenced from the survey that size of audit fees is the most important factor, followed by competition, size of audit firm, tenure, provision of management advisory service and finally audit committee. More specifically, the study indicates that (1) larger size of audit fees, (2) audit firms operating in a higher level of competitive environments, (3) smaller audit firms, (4) audit firms serving a given client over a longer duration, (5) audit firms providing MAS, and, (6) the non-existence of an audit committee, are perceived as having a higher risk of losing independence. This study provides a basis for the profession to establish policies relating to auditor independence. Also, it may assist policy makers and other relevant international accounting agencies in their attempt towards the international harmonization of auditing standards. The major contribution of this paper is that it supplies recent evidence on factors influencing auditor independence from the viewpoint of Malaysian accountants.

Due to a series of high profile accounting scandals and corporate collapses such as Enron, World.Com and Andersen, ethical conduct has been widely recognized as a crucial element in accounting profession and education. The growing concern over the ethics of professionals has also called for more academic research into this critical area. Our study aims at assessing ethical behaviors of the future accounting professionals (i.e. final year accounting students) in Malaysia. This study which uses questionnaire survey examined the students' ethical attitudes as to whether they would act unethically in an examination. Also, their attitudes towards whistleblowing -if they become aware of such unethical conduct were examined. A vast majority of students (73 per cent), decided to be on the safe side -neither being purely unethical nor whistleblowers. Of the students, 11 per cent chose to become whistleblowers. While only 16 per cent would act unethically in exam, the percentage significantly declined once the risk of being caught was introduced. This indicates that students have not moved further from the first level of Kohlberg's stages of moral development which highly depends on the punishment and penalty in order to behave ethically. Results also reveal that students with good academic achievement were less likely to cheat in exam. Furthermore, a larger proportion of male students as compared to female tend to behave unethically. Overall, the study indicates favorable results since the majority of respondents would not prefer to indulge in unethical behavior, although they are not being purely ethical.

Purpose-The purpose of this paper is to review the accounting treatments for corporate zakat, as advocated by accounting standards and guidelines, as well as those been practised by relevant corporations. The aim is to determine their appropriateness and adherence to both the Islamic as well as the accounting theoretical perspectives. Design/methodology/approach-Accounting standards and guidelines related to zakat, including the Financial Accounting Standard No. 9 and the Technical Release i-1, are examined. Additionally, analyses are made on the practices of Islamic financial institutions to determine their compliance with both standards and ontological aspects of zakat. Findings-The study reveals that there is a general misconception of zakat, as indicated in several standards and guidelines, which has consequently resulted in inappropriateness in their proposed corporate zakat recognition and measurement and hence presentations. These inaccuracies, in one way or another, have not been in line with the true spirit of zakat in Islam. More worryingly, some unfavorable consequences may and in fact have already been implicated on the larger Muslim community as a result. Research limitations/implications-An alternative view on the accounting treatment of corporate zakat is offered in this paper with the aim to provide a fair and proper assessment of zakat on corporate wealth, which is more parallel to the true spirit of zakat. Originality/value-The paper integrates both the revealed and the contemporary accounting knowledge in scrutinizing the standards and practices as well as in recommending an improved and meaningful alternative.

The paper adopts a descriptive case study method to examine the impact of juristic views on the operations of two Malaysian takaful companies. In order to achieve this objective, the annual financial reports of both companies were analysed. Interviews with each company's finance managers and with a member of the Malaysian Shariah Advisory Council were undertaken for a more in-depth coverage. Also a written correspondence with a senior official of the central bank was accomplished. Similarities and differences between the two companies were identified and it is concluded that the differences are serious enough to warrant interventions from the regulators in the form of mandatory disclosures in the annual reports.

No abstract