Internal control system for Islamic micro financing: An exploratory study of Baitul Maal wat Tamwil in the City of Yogyakarta Indonesia

Wardiwiyono, Sartini (2012) Internal control system for Islamic micro financing: An exploratory study of Baitul Maal wat Tamwil in the City of Yogyakarta Indonesia. [Artikel Dosen]

Text Internal control system in BMT.pdf - Published Version Download (429kB)

Abstract

Purpose – This paper aims to contribute to literature on managing Islamic micro financing by
formulating and evaluating the implementation of internal control system for Islamic micro financing.
It also aims to investigate the implementation of an internal control system for financing activities
practiced by Baitul Maal wat Tamwil (BMT), a special micro finance organization, in Indonesia.
Design/methodology/approach – First, the paper introduces the concept of internal control
system. Second, an internal control system for Islamic financing is formulated. Primary data that
relate to the implementation of an internal control system for financing activities are obtained through
a direct survey using questionnaires. The data are then analyzed using descriptive statistic and
qualitative analysis to find the implementations of the internal control system.
Findings – BMTs in Indonesia have implemented an internal control system for their financing
activities. The rank of the implementation is: information and communication; monitoring; control
environment; risk assessment; and control activities. This study also indicates that the implementation
of authorization and consultation to the Shariah Supervisory Board was low.
Research limitations/implications – The respondents of this study are small in number.
However, the findings are valid and reliable.
Originality/value – To the author’s knowledge, there is a lack of scholars’ attention on the
implementation of internal control especially for Islamic micro financing. Therefore, this study will
provide insight to the literature on how to manage Islamic micro financing efficiently and effectively.

Keywords Internal control system, Baitul Maal wat Tamwil, Islamic micro financing, Indonesia,

Item Type:	Artikel Dosen
Subjects:	H Social Sciences > HG Finance
Divisi / Prodi:	Faculty of Economics (Fakultas Ekonomi) > S1-Accounting (S1 Akuntansi)
Depositing User:	Sartini Wardiwiyono SE, MSACC, PhD, Ak, CA
Date Deposited:	17 Jan 2022 03:20
Last Modified:	17 Jan 2022 03:20
URI:	http://eprints.uad.ac.id/id/eprint/27076

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