Open AccessThe Analysis of Internal Control Implementation of Zakat Institutions
Author(s) -
Dita Andraeny,
Devi Narulitasari
Publication year - 2019
Publication title -
international conference of zakat proceedings
Language(s) - English
Resource type - Journals
ISSN - 2655-6251
DOI - 10.37706/iconz.2018.131
Subject(s) - internal control , control (management) , business , separation of duties , authorization , database transaction , control environment , accounting , process management , operations management , computer science , computer security , internal audit , engineering , database , audit , joint audit , artificial intelligence , role based access control
The implementation of internal control system is very important not only in profit oriented firms but also in non profit organizations including zakat institution. Internal control system ensures the reliability of financial reporting system, protects organization’s assets from assets missappropriation, and also minimizes the occurence of fraud. This study aims to evaluate the implementation of internal control of zakat institutions in Surakarta. The objects of this research are LAZ Dompet Peduli Umat Daarut Tauhiid (DPU DT) Solo, LAZISMU Solo, and BAZNAS Solo. The objects of this study are based on convenience sampling. This research is a qualitative descriptive research with multiple case study approach. The result of this study indicates that in general, all zakat institutions observed have implemented the internal control system in terms of control environment, risk assessment, control activities, information and communication and supervisory activities. However, there is still weakness in internal control that related to the aspect of segregation of tasks that has not been done completely. In addition, those three zakat institutions did not have a flow chart document for the conducted transaction and one of them has not implemented yet about the authorization system and printed serial number documents.