Accounting system and accountability practices in an Islamic setting: A grounded theory perspective

The purpose of this paper is to provide theoretical insights on the accounting and accountability practices of islamic religious non-profit organisations. a case study of an islamic boarding school in aceh,indonesia,was conducted and a grounded theory is used in this research. data were generated from interviews with people inside and outside of the organisation,review of documentary materials and observation of the daily activities of the organisation. the study found that the financial report is seen by the management of the islamic boarding school as an instrument that plays a very significant role in enhancing accountability of the organisation. accounting activities are viewed as activities that have no contradiction to the religious belief and also the missions of the organisation. however,accounting practices in this institution are less developed and the financial accountability demonstrated by the management is still far from what is expected by society. © 2016 universiti putra malaysia press.