Assignment PIA
Assignment PIA
................................................
................................................. (NORA’INI BINTI
(NOR RAJWANI BINTI AWANG) AWAB)
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
COURSE : PRINCIPLES OF ISLAMIC ACCOUNTING
COURSE CODE : ACC 2682
SESSION : 1 2022/2023
Lecturer’s name : Madam Suraya Bahar
DATE ASSIGN : Week 2 – Monday 21/3/2022
DATE DUE : Week 3 – Tuesday 29/3/2022
(before 4.30pm)
Student’s details
Name ID
Luqmanul Hakim Bin Norazman PDA-2007-099
Farah Natasha Binti Nazrul Azam PDA-2007-066
Nurul Asyiqin Binti Jamaludin PDA-2007-078
Nur Hazimah Binti Mazlan PDA-2007-077
Class: DIA 6E
Acc2682/S1_22/assignment_1
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
Table of content
No Content Page
1 Acknowledgement 4
2 Part A 5-8
3 Part B 9 - 12
4 Link video presentation 13
5 Reference 14
6 Rubric 15
Acc2682/S1_22/assignment_1
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
ACKNOWLEDGEMENT
Assalamualaikum W.B.T, first and foremost we want to thank Allah SWT for giving
us the chance and strength to finish this ACC 2682 course Assignment during this
semester. No doubt there are problems faced throughout the journey to finish this
assignment but God willing we are able to solve them all.
Moreover, we wish to express our gratitude to Madam Suraya Binti Bahar, our
Principle of Islamic Accounting lecturer for providing us the opportunity to work on
this assignment to test our understanding in this course. Not to forget the guidance
and encouragement gave for us to carry on the assignment. Alas, helping us in
enhancing our group work morale and preparing us in workforce after study.
We also sincerely want to thank our parents and friend for support and
encouragement they give throughout the process of completing the assignment. Not
to forget the group member among ourselves, thank you for the collaboration, idea
contribution, energy and time spend given only to complete the assignment and task
given. We hope nothing but succession of our ACC 2682 course Assignment
outcome.
Acc2682/S1_22/assignment_1
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
Part A
Question 1
Acc2682/S1_22/assignment_1
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
Question 2
(a) What is a code of ethics?
Acc2682/S1_22/assignment_1
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
Acc2682/S1_22/assignment_1
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
(b) Distinguish between AAOIFI code of ethics and MIA code of ethics.
AAOIFI MIA
Develop standards in Develop standards in
accounting, auditing, Coverage accounting, auditing,
ethics and governance for ethics and governance for
international Islamic Malaysian finance only
finance
Trustworthiness Integrity
Legitimacy Objectivity
Objectivity Professional
Professional Fundamental Principle competence and
competence and due care
diligence Confidentiality
Faith-driven Professional
conduct and behavior
professional
conduct
Technical standards
Derived from Islamic Derived from ethical
Syari’ah rules and Adaption codes for Professional
principles Accountants issuance by
the International
Federation of Accountants
(IFAC)
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PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
Part B
Question 3
(a) In what way can the Islamic concept of `piety’ assist the accountants to
become ethical?
Riba and excessive gharar are Islamic prohibitions that involve lending and
borrowing money at interest, as well as the selling of risk. For example, Islamic
money should not be utilized to fund a brewery since the underlying activity, alcohol
drinking, is banned by Islam. Similarly, due to riba and excessive gharar restrictions,
the money cannot be utilized for lending money at interest or selling risk.
The AAOIFI's code of ethical behavior for accountants outlines an ethical framework
based on Islamic Shariah norms and principles for accountants. The primary premise
of this code is that Muslim accountants will be driven to follow it for religious reasons
and as a method of fulfilling Allah's commands and abstaining from those that He
forbids. Accountants will also be driven to follow the ethical concepts outlined in
professional codes of ethics, as long as the latter do not conflict with Shariah norms
and principles. The guideline also attempts to assist accountants acquire ethical
awareness by bringing ethical concerns in professional activity to their notice.
Acc2682/S1_22/assignment_1
PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
(b) What are the rules of ethical conduct based on the Islamic principles of
‘trustworthiness’? Do you think these ethical rules are sufficient to discipline
accountants?
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ASSIGNMENT : S1 2022/2023
give tremendous reasons for ethical behaviour in all facets of human life, including
accounting.
Muslims derive their ethics from two basic sources: the Qur'an and the
Sunnah of the Prophet Muhammad (p.b.u.h). The term Khuluq is closely associated
with ethics in the Qur'an (good nature). It refers to continuing to be a good
character in one's own deeds for Allah (S.W.T) or in actions involving other people.
According to Abdul Rahim (2013), the human activity of life is determined by akhlaq
(plural of khuluq). Such character will result in positive human activities, which will
be acquired via instruction and practise. The term "ethics" derives from the Greek
word "ethos." Ethos refers to the precise ideals, norms, rules, spirit, and attitude
that individuals believe in and use to live their life.
Muslims were encouraged by Islam to be ethical toward others. Goodness
may be defined as the attitude of not hurting anybody by word or deed, forgiving
those who have injured him or her, forgetting the sins done, and returning bad with
good. This is due to the fact that the notion of goodness and morality is increasingly
centred on some fundamental beliefs and principles for Muslims to live ethically. As a
result, the Qur'an prescribes concepts of goodness such as khayr (goodness), birr
(righteousness), 'adl (equilibrium and justice), trust (Amanah), benevolence
(Ihsaan), and others. In Islam, the concept of trust (Amanah) is the most
fundamental kind of din in reciprocal relationships for Allah and human "secular"
relationships such as societies. According to the Qur'an, "every soul will be (kept) in
pledge for its deeds." (Qur'an, verse 74:38)
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Reference
https://jgi.ump.edu.my/index.php/en/volume-2-issue-1-december-2018/95-
role-of-islamic-ethics-towards-ethical-accounting-practice/file
2. MIA. (2019). By Laws (On Professional Ethics, Conduct and Practice) Of The
Malaysian Institute Of Accountants.
3. Wahyuni, I & other contributors. (2018). Role of Islamic Ethics Towards Ethical
Accounting Practice (Vol 2). Penerbit UMP Press.
7. Hayes, A. (2022, February 8). Codes of ethics: Types and examples. Investopedia.
https://www.investopedia.com/terms/c/code-ofethics
8. (PDF) conventional accounting vs. Islamic Accounting: A ... (n.d.). Retrieved March
28, 2022, from
https://www.researchgate.net/publication/349044369_Conventional_Accounting_vs_I
slamic_Accounting_A_Comparative_Study
9. Conventional accounting vs islamic accounting - the debate revisited.pdf - The current issue
and full text archive of this journal is available: Course Hero URL
https://www.coursehero.com/file/78617066/conventional-accounting-vs-islamic-
accounting-the-debate-revisitedpdf/
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PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
Group members:
1. Luqmanul Hakim Bin Norazman
2. Farah Natasha Binti Nazrul Azam
3. Nur Hazimah Binti Mazlan
4. Nurul Asyiqin Binti Jamaludin
RUBRICS
SEMESTER: 1 2022/2023
Developing Standard Exemplary Total
No Criteria / Score Points
3 - 6 7 - 8 9 - 10
Scored
1 Content Lacks depth limited Only some topics In depth and
treatment of are thoroughly thorough
assigned topics. discussed and given discussion of
Demonstrates an in-depth assigned topics. /10
limited evidence treatment. Shows Shows strong
of research. moderate evidence evidence of
of research. research.
2 Organization and Shows minimum Shows adequate Very well planned,
Clarity of planning, some planning, some logical
presentation sections are sections need presentation and
/10
disorganized and clarification and well understood by
confusing improvement the audience
logical presentation
3 Delivery Nervous, Voice projection is Relaxed,
selfconscious and satisfactorily varied selfconfident.
monotone voice in volume and Voice projection
inflection flutuates in volume /10
and inflection and
sustain interest
TOTAL SCORED /50
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PRINCIPLE OF ISLAMIC ACCOUNTING
ACC2682
ASSIGNMENT : S1 2022/2023
Lecturer: Madam Suraya Bahar Date: 29/3/2022
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