UPI-GCBME 2016
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Abstract

INTERNAL CONTROL AND QUALITY OF FINANCIAL REPORTING IN ZAKAT MANAGEMENT ORGANIZATION
elis mediawati

Indonesia University of Education

Zakat is the third pillar of Islam, it must be fulfilled by a muzaki (the person who is obliged to issue zakat), because the rights of others are in the assets which are owned. Zakat in Islam is the worship contains two dimensions they are hablum minallah or vertical dimension and hablum minannas or horizontal dimension.
There is very noticeable difference between the zakat potential and its receipt realization by Zakat Management Organization (ZMO). Allegedly the problem occurs because it is lack of public trust to ZMO. Public trust is closely related to the quality of the financial information which is presented by ZMO. The information will be useful if the information is able to support the community decision-making to entrust their zakat to ZMO as an institution which is considered mandate to receive, utilize and distribute zakat which is entrusted by community.
Internal control is necessary to obtain the quality of financial reporting. Financial statements are credible information sources by the financial statements users to determine the performance of management and the company's financial position. To produce quality financial reports it is required financial reporting quality. It should also be supported by internal control over quality financial reporting.
This study aims to determine the relation of internal control implementation on the quality of financial reporting. The method which is used in this study is a survey method, it is descriptive and verification, and the data is collected from a sample that has been determined, it is obtained by using a specific data collection tools, the questionnaires . The unit of analysis in this study is the ZMO in Bandung city. The hypothesis testing uses moment product correlation and coefficient of determination (R2).
The result of this research is the relation of internal control implementation with the quality of financial reporting is positive and very strong.

Topic: Financial Management and Accounting

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