Internal Control Practices of Mosques in Java, Indonesia

Abstract

Internal controls are necessary tools to help organisations attain organisational goals. Lack of these controls could lead to fraudulent activities, which hamper the achievement of organisational goals. Thus, this study aims to investigate the internal control practices in the selected Indonesian mosques. Two mosques were chosen for the purpose of this study; Mosque A and Mosque B. The study employs Committee of Sponsoring Organization (COSO, 2013) framework of internal controls to frame the investigation of internal control practices in these two mosques. Data collection was undertaken through interviews and reviews of relevant documents. The findings reveal that the two selected mosques; Mosque A and B, have five mechanisms of internal control practices in place. These include control environment, risk assessment, control activities, information and communication, and monitoring activities. This study concludes that internal control practices are a necessary process to support the accountability of the mosque. The results of this study could be used as potential reference for the improvement of internal control practices in the Indonesian mosques.

Insights into Financial Management Practices of Tahfiz Institutions (TI): A Selangor Perspective

“…Additionally, item 4 also highlights the practice of keeping cash in a locked deposit box and within the supervision of a responsible individual. This demonstrates effective internal control measures for cash management, which serve to prevent manipulation and any misappropriation of funds (Islamiyah et al, 2020).…”

“…The reports should be used to support the TIs management in evaluating their efficiency in managing its resources and obligation as well as assessing the performance of TIs (Reheul et al, 2017). To ensure the quality of the reports, a proper internal control structure should be in place in order to curb the misappropriation of fund activities (Islamiyah et al, 2020), and inaccurate financial report (Ahmad et al, 2020). External audit on TIs financial reports is highly recommended as it will ensure the reliability of the information disclosed in the reports which lead to higher public donations and contributions (Feng, 2020).…”

“…As discussed by many literatures (Mohd Ali et al, 2017;Hommerová & Severová , 2019;Yusop et al, 2020), the collection of money by NPOs including TIs can be from many sources such as the fees, donations, government grants, and business income. The significant of funds is very important, especially on the fund diversifications which ensure NPOs to be able to survive even though the major collection of funds which is the fees (Ali et al, 2017), are absent due to many factors such as the economic downturn (Matsimbi & Mtapuri, 2014), management problems (Lu et al, 2020), fraud and abuses (Arshad et al, 2015;Islamiyah et al, 2020;Razak et al, 2022) and COVID outbreak (Kim & Mason, 2020). All cheques shall only be endorsed and signed when all details are properly written on the cheques 4.5…”

Internal Control Practices of Waqf Management in Yayasan Canselor, Universiti Kebangsaan Malaysia

“…Meanwhile, Islamiyah, Siraj and Osman (2020) conducted a study investigating the internal control practices in selected Indonesian mosques. For future research, Islamiyah et al (2020) suggest future studies in internal control practices to be conducted in other Islamic organizations, such as the institutions of waqf. Management in waqf institutions has been chosen due to the establishment of waqf institutions in each of Malaysia's public universities.…”