INTERNAL CONTROL PRACTICES IN MALAYSIAN MOSQUES
DOI:
https://doi.org/10.35631/AIJBES.828042Keywords:
Coso Framework, Internal Control Practices, Malaysian, MosquesAbstract
Internal control systems have an important role in strengthening accountability and financial governance in nonprofit religious institutions like mosques. This study aims to examine to what extent the five COSO internal control components are practised in Malaysian mosques and how these practices support accountability, transparency, compliance and responsible financial management. The study examines five internal control components which are control environment, risk assessment, control activities, information and communication, and monitoring activities. A quantitative cross-sectional survey design was used, targeting mosque administrators, treasurers and financial committee members who are directly involved in managing mosque financial resources including donations and waqf funds. A total of 300 questionnaires were distributed, 254 returned, and 206 usable responses are being used for final analysis. The data for this study were analysed using SmartPLS software through descriptive statistics, such as mean and standard deviation. The results indicate the internal control practices of Malaysian mosques are at a high level, with an overall mean of 4.15 and a standard deviation of 0.77. Of the five components, control environment recorded the highest mean score whereas risk assessment recorded the lowest mean score. The findings show that Malaysian mosques generally have strong foundations for governance, especially in ethical leadership, accountability culture, monitoring, documentation and communication. However, risk assessment practices require further attention, especially in relation to systematic risk identification and fraud-risk awareness. Overall, this study provides empirical evidence on the importance of internal control practices in Malaysian mosques and highlights the relevance of the COSO framework in strengthening mosque governance, public trust, and financial management in faith-based nonprofit institutions.
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