THE INTERNAL CONTROL PROCEDURES OF MOSQUES IN MALAYSIA

Embezzlement of funds from religious organizations, particularly in Western church institutions, is increasingly becoming more common. Such scandals have raised concerns on the internal control systems of these organizations. Although there has been no report of financial scandals in mosques, there is increasing concern as to whether these organizations experience the same deficiencies as other religious institutions. Accordingly, our study examines the internal control procedures relating to the receipt of income and the disbursement of funds in state mosques in West Malaysia. A questionnaire survey and face-to-face interviews were used to collect the data. The results of the study indicate that state mosques in West Malaysia have a strong internal control system pertaining to the receipt of income and disbursement of funds. The study also reveals that basic control activities such as the segregation of duties, recording of financial transactions and authorization of particular activities are satisfactorily practiced by the mosques. Although this is an exploratory study, the results may provide a benchmark for further studies examining internal control practices in religious organizations