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Duties of Accountant According to Quran

Ismail Yurdakok
ismailyurdakok@yahoo.com

Abstract:
Davison’s study “The accounting lecturer’s role in integrating Biblical values with le
arning”; O. Teckle’s, “Conveying Christian ethics in accounting and financial manageme
nt courses”, E. M. Tebbs’s, “Managing the Financial Resources of a Family: An Adventis
t Perspective”, H. Foster’s, “The Integration of Values and Learning: An application t
o accounting”, Thomas-Nathan and Dechun’s, “Do Local Religious Norms Affect Auditor’s Go
ing Concern Decisions?” and others put that a lot of studies in the West are inte
rested in harmony of Western values and accounting. Quran describes itself: “We ha
ve sent down to you the Book as an exposition of all things, a guidance, a mercy
and glad tidings to the Muslims” (16:89); and it has got examples of all (social,
economic, cultural) events (17:89, 18:54) that we can follow the traces of the
duties of an accountant in the verses. The longest verse of Quran (2: 282) is th
e foundation of Islamic accounting that that’s why the history of the ‘recording of
all accounts’ dates back to the first century of Islam. ‘Not to hide the real number
s’ that ‘kitman (to hide)’ is prohibited (2:284) in different verses. Muslim accountan
ts have to insist lunar calendar for accounts (10:5); and think “Are predictions a
lways true ?” (10:36); thinking also on “clothing of taqwa (Godfearing) is the best” (
7:26) Accountant should be thrifty, and s/he should prepare lectures about the h
arms of prodigality (6:141) for the staff and workers. Accountant must say the t
ruth (33:70) when CEO, patron, owner or shareholders of the firm sell the compan
y (or their lots.) Accountants (should) encourage the CEOs (or shareholders) to
give more charity to the poor and to the workers of the company especially in th
e years of much profits is seen in the balance sheets. An account for qarz-i has
an (lending without interest) (5:12; 57:11,18; 64:17; 2:245; 73:20) in the balan
ce sheet should be put, and this account should be used for individuals or trust
worthy companies and the accountant should give struggle for qarz-i hasan to be
institutionalized. Muslim accountant must avoid interest operations (2:275-79),
and s/he must not permit paying bribery to State or judicial organs or other per
son/institutions (2:188.) S/he also should control/follow marketing-advertising-
accounting operations that are they compatible to Islamic rules or not?. An acco
untant also should think probable and extraordinary events like flood, quake and
different calamities and put necessary spare money (reserves) into the balance
sheets remembering “We shall surely test you with fear and hunger, and loss of pro
perty and lives and crops..” (2:155.) Quran makes remembered an accountant differ
ent aspects of his/her (daily) duty and and in the paper they will be studied.

Introduction. Every culture and civilization has got an accountancy tradition. I


n their paper, Bloom and Solotko note interesting points of Confuciusian account
ancy: “The most important Chinese philosopher, Confucius, was primarily concerned
with improving social welfare and ethical behaviour. He preached enlightened sta
te leadership and conformity to traditions. Believing in equal opportunity educa
tion and public service, Confucius trained individuals to become government offi
cials. He emphasized the importance of working with others harmoniously, contend
ing that government should operate on the basis of propriety, morality, and ritu
als rather than laws and punishment. This paper examines the main tenets of Conf
ucianism and considers Chinese and Japanese accounting principles in light of Co
nfucianism. The influence of Confucius on both Chinese and Japanese accounting i
s apparent.” (Bloom and Solotko, 2010)
Ethical, Religious and Historical Accounting Studies in the West.
Geoffrey Goldsmith’s studies as a productive writer in accountiing field are impor
tant:
His dissertation: “Self-Regulation of the Financial Disclosure of Evangelical Not-
for-Profit Organizations”, (1994) and academic article "Accounting s Foundation:
Postmodernism or Biblical Principles?” (Belhaven e-journal 2005), and professional
presentations: "Comprehensive Biblical Integration of the Accounting Curriculu
m" Christian Business Faculty Association Seattle Pacific University, WA Oct. 2
007. "FASB’s Proposed Changes in Financial Statements: Why and How" National Asso
ciation of Government Accountants Jackson, MS July 2007. "Accounting s Foundati
on: Postmodernism or Biblical Principles?" Christian Business Faculty Associati
on, San Diego, CA, October 2005. "Postmodern Accounting", Niagara Falls Univers
ity International Conference on Emerging Issues in Business, Niagara University
, NY, August 2005. "Teaching Accounting in Postmodern America", Christian Busin
ess Faculty Association Conference, San Antonio, TX, October 2004
And his paper: “Accounti
ng’s Foundation: Should the Philosophical Foundation of Accounting Be Postmodernis
m or Christianity?” His notes in the abstract are very useful: “The Financial Accoun
ting Standards Board (FASB) regulates financial accounting. FASB issues two kind
s of accounting pronouncements. The first kind are Statements of Financial Ac-co
unting Concepts (SFACs). They are the theoretical foundation for the regulations
which are promulgated in the Statements of Financial Accounting Standards (SFAS
s). FASB‟s theoretical statements are based on unstated philosophical assumptions
about ethics and human nature. For example, FASB has assumed that investors are
rational and are able to understand financial statements. In a paper I presented
previously for the Christian Business Faculty Association, I looked at the cont
radictions between the currently popular philosophy of postmodernism and FASB’s fo
undational assumptions. The paper provided a useful perspective for accounting e
ducators, particularly those in state institutions who cannot overtly teach from
a religious perspective. In this paper, I have extended the discussion—in order t
o make it even more useful for those teaching in Christian colleges who want to
integrate faith and learning—to show points of compatibility between FASB’s philosop
hical assumptions and biblically-based Christian philosophy.” He also notes: “…(3.) A
fundamental Christian doctrine is that of the imago dei (first definition: God s
own self-actualization through humankind; and second, God s care for humankind.
) We are created in the image of God, with dignity, reason, emotions, will, and
intellect. God cherishes us, giving us great value. Nevertheless, depravity is a
nother fundamental Christian doctrine. We are all heirs to the rebellion of Adam
and Eve—depraved sinners who are incapable of wholeheartedly following God‟s law. W
e are, however, extremely capable of—and experienced in—breaking his commandments in
creative ways. A worldview that recognizes this is necessary in the accounting
profession because the preparation of financial statements requires moral integr
ity—or at least an audit.” And Goldsmith completes the paper with these statements: “I
am still working my way through the process of thinking about the com-patibilit
y of FASB’s philosophical assumptions with biblical principles. This paper is only
a tentative step in that direction. But I think that a restoration of Christian
virtues holds great promise for providing a solid ethical foundation for the ac
counting profession in a culture that is sinking into a quicksand of relativism,
meaninglessness, and irrationality. I also am hopeful that this pa-per could st
imulate other Christian accounting instructors with useful ideas for integrating
Christian principles into their curricula.”
Mwanahiba Davison’s study: “The Accounting Lecturer’s Role in Integrating Biblical Val
ues with Learning”; Teckle Orshiso’s: “Conveying Christian Ethics in Accounting and Fi
nancial Management Courses”; Henry C. Foster’s: “The Integration of Values and Learnin
g: An Application to Accounting”; Emily Dubo and R. Tebbs’s: “Managing the Financial R
esources of a Family: An Adventist Perspective” are also seen as studies intereste
d in Christian viewpoint on accounting.
The Sixteenth Conference on Accounting and Management History will be held in Na
ntes on March 23-25, 2011. The conference, which has the theme of "Perception, R
epresentations, and Measures of Profit," The original call for papers explains
the goals of the conference: participants will consider how Old Regime merchant
s, bankers, industrialists, or financiers understood profit, how these perceptio
ns were formed, what information was important, what instruments for observing,
measuring, and predicting were used to support decisions.”
We also see another “Call for Papers: Keeping account of charity: account-books an
d budget surveys as a source for individual charitableness. Session at the Europ
ean Social Science History Conference, Glasgow University, Scotland, UK, 11 - 14
April 2012, in the Social Inequality Network.” Organizers mentiones interesting n
otes: “In 1627 the Dutch burgomaster Jacob van Brouckhoven (1577-1642) started ke
eping a register in which he recorded all charitable expenses he made. He used i
t to record the expenses on the almshouse he built, but he also registered the c
ouples he housed in some of his property, occasional alms to individuals, the an
nual stipend he gave a poor relative, and the donations he made to several insti
tutions of poor relief. Studies of poor relief and charity often focus on instit
utional sources, but these give us only insight into part of the complete range
of charitableness
people in the past engaged in. People did not just found and build almshouses, b
equeath part of their estate to the poor or join in collections held by institut
ions engaging in poor relief: they also gave alms to beggars in the street, hous
ed poor people in their backyard or contributed to their upkeep. This informal r
elief however seldom made it into the records of poor relief institutions, and t
hus often escapes the notice of historians. To circumvent this problem, a seldom
used, let alone systematically studied, source should be considered: the accoun
t-books of individuals, in which they recorded their income and expenses. Along
entries informing us on the cost of life and the sort of things people bought, t
hey often also include entries on charitable expenses. Separate charitable accou
nt-books like Jacob van
Brouckhoven’s will have been rare; but one might expect that people conscientious
enough to keep track of their expenses also recorded what they gave to poor reli
ef in all its guises. We would like to invite contributions from all periods and
cultures on charitable expenses in account-books and budget surveys. Questions
which we would like to see addressed are: what did people give, how, when and wh
ere? How frequent were these expenses? Can one say anything about the charitable
percentage of the total of their expenses? Did they write anything on their mot
ivations for giving? From what class were they? And finally: do
account-books exist of people receiving poor relief?”
A very useful statement is seen in the call for papers of 2th Balkans and Middle
East Countries Conference on Auditing and Accounting History (was held in İstanbu
l between 15-18 September 2010) and emphasizes the importance of historical stud
ies in the field:: “With the dawn of the 21st Century, economic globalization has
directed the Balkans and Middle East towards a changing process of accounting re
cording and auditing rules, especially within the context of developments in the
European Union. Africa, Central Asia and South East Asia have also been faced w
ith the same requirements. On the other hand, these requirements have shown them
selves in the globalization of accounting standards. Naturally, this conference
is oriented towards the requirements of a large geographical area. It is not un
remarkable that accounting history has been growing rapidly not only in western
countries but also in the above mentioned national cultures in this geographic r
egion. In addition to that, the belief that today’s accounting and auditing needs
will be shaped by historical developments is being reinforced…The conference theme
is Auditing and Culture in Accounting from Past to Present ”
Papers About Islamic Accounting History in Last World Congress of Accounting His
torians
Papers about Islamic Accounting History appeared in last (the 12th) World Congre
ss of Accounting Historians (that was held on September 14-18, 2010 in İstanbul) t
hat will be useful to mention them: Vehbi Karabıyık’s paper: “The Accounting Formation o
f Ottoman Empire and an Auditing of a Corruption in Accounting in the Early 18th
Century”. The other papers are: “Finance Inspection Board: Ottoman Era (1879-1922)” b
y Emre Çelebiler-Oktay Güvemli, “Financial Management in Ottoman Empire and Investigat
ion of Illegally Acquired Assets at the End of XVIIIth Century” by Fatma Şensoy, “Waqf
s in the Ottoman Empire and the Accounting Record System in the Waqfs” by Sudi Apa
k-Mikail Erol-Osman Uluyol-Ahmet Akcan, “Ottoman Archive Documents in Terms of Acc
ounting History” by Mustafa Budak, “Taxation in Islamic Economy: Instances from Soko
to Caliphate and Lessons for Sharia Compliant States of Nigeria” by Kabiru I. Dand
ago, “ “The First Course Books on Double-Entry Accounting in the Ottoman Era” by Mehme
t Özbirecikli-Ümmühan Arslan, “Overview of Different Paradigms Concerning the Origin of
Double-Entry Bookkeeping” by Kambiz Forqandost Haqiqi, “Accounting System of the Cha
ritable Endowments in the Ottoman Empire (16th to 19th Centuries) by Kayhan Orba
y, “Jami‘u’l-Hisab: A Mardiban (Stairs) Style Accounting Instruction Book from the Ear
ly 14th Century Ilkhanate State” by Fehmi Yıldız-Batuhan Güvemli, “The Mardiban Method Use
d in Ottoman State Accounting: The Organization of a Central Accountancy and Rec
ordkeeping System” by Mahmut Sezinler, “Regulating Auditing in Saudi Arabia: from St
ate to Selfregulation” by Hussam A. Al-Angari, “The Development of Auditing Professi
on in Palestine: Critical Approach” Akram I. Rahhal, “Analysis of Ottoman Public Deb
t Administration (OPDA) on the Progress of Accounting at the Ottoman Empire and
the Influence of this Debt Management” by Cengiz Toraman-Hasan Abdioğlu-Sinan Yılmaz, “T
he Establishment Story of a School (Hamidiya School of Commerce) Giving Accounti
ng Education in the Second Half of the 19th Century” by Ayten Çetin-Ayşe Pamukçu-Ertuğrul
Yüksel, “Mehmed Cavid Bey (1875-1926) and His Thoughts (on Accounting)” by Necati Aydın,
“The Mardiban (Stairs) Accounting System and Comparison with Present Day Accounti
ng Rules: An Example about Kitchen Expenditures in Ottoman State” by Cengiz Torama
n-Cemal Elitaş-Oğuzhan Aydemir, “A Sample Implementation Related to the Muqataa System
(Taxation for Cultivated Lands) in the Ottoman Empire and Stairs Accounting Met
hod” by Cemal Elitaş-Feyyaz Yıldız-Bilge Leyli Elitaş, “A Sample Application of Stairs Acco
nting Method and Cash Awqaf in Ottoman State” by Uğur Özcan-Bilge Leyli Elitaş-Oğuzhan Kal
kan, “Bilateral Limitation in Accounting and Kitabu’s-Siyaqat” by Remzi Örten, “State Acco
unting System in the Ottoman Empire -Stair Method: Catalogue Work” by Cengiz Tora
man-Oğuzhan Aydemir, “The Establishment and Historical Development of General Direct
orate of Public Accounts (Muhasabat Muduriyyat al-Umumiyya of Ottoman Empire)” by
Yılmaz Öztürk.
VERSES ABOUT ACCOUNTING IN QURAN
Muhasaba (to call to account) thought is seen in different chapters of Quran: “…Whet
her you make known what is in your souls or hide it. Allah will bring you to acc
ount for it…” (2: 284) We see the term of “Yawm al hesab” (Day of Reckoning) as a Qu
ranic concept: “Moses said: “I have taken refuge in my God and your God against arro
gant one who does not believe in the Day of Reckoning” (40:27) Quran encouraged M
uslims to interrogate themselves, from the early days of Islam; “Their reckoning h
as drawn near for mankind, while they turn away in carelessness” (21: 1), “Then are
mankind returned to Allah, their God, their real God. Surely His is the judgemen
t, and He is the most swift ofreckoners.” (6: 62), “For them, there is an abundant r
eward which they have earned. Assuredly, Allah is Swift at reckoning.” (2: 202), “…The
y (believers) fear their God and dread an evil reckoning” (13: 21) Mankind is remi
nded that there is a Hereafter and all of his/her deeds will be questioned/rewar
ded: “This it is taht you are promised for the Day of Reckoning” (38: 53), “A suitable
recompense! This is because they did not expect reckoning” (78: 26-27) Every man
is responsible (especially) from his/her deeds: “…You are not by any means accounta
ble for them, nor are they accountable for you,..” (6:52); “…We (God) shall bring fort
h for him (man) on the day of Resurrection a book he shall find wide open. (It w
ill be said to him): “Read your book! Your soul is sufficient this day as reckoner
against you!” (17: 13-14)
The word “kafir” (disbeliever) (that with its singular, plural and verbal forms is r
epeated in Quran approximately 500 times) (Abdulbaqi, 605-613) means in classica
l Arabic “man who hides (the realities)” points that Muslims should be transparents.
Quran is a source of spiritual doping especially in economic meltdowns for acco
untants and other employers and employees: “Is not He (God) Who accepts the man’s pr
ayer who in embarrassment when he entreats to Him and He (God) takes off their t
roubles..” (27:62) Muslim accountant gives morale to the employees and other (even
ceo and) high executives and shareholders and he/she reminds the shareholdres a
nd all of the business milieu: “…Who gives sustenance for you from the sky and the e
arth? Is there any God beside Allah?” (27:64) Accountant thinks (also) his/her fau
lts in the negative positions of the company and returns to Quran and thinks als
o his/her and the other faults of executives and other employees and then thinks
also sone sins may be they committed and calls the staff for istigfar (repentan
ce): “…Whoever fears Allah, He shows (opens) a way (an exit) for him and gives suste
nance that the man can not guesses…” (65: 2-3), “Allah will ease the hardship of the
man who fears Him” (65:4) Are predictions always true? “…But a conjecture is no subst
itute for truth..” (10:36) That’s why accountant does not estimate/not put an opinio
n what he/she does not know and accountant knows/believes that exact estimation
of the future of the business life is impossible: “…No man knows what he/she will e
arn tomorrow…” (31: 34) that’s why he/she is not in a panic in downturns and he/she be
lieves that Allah is not muharrik-i awwal (first mover) but Muharrik-i Daimi (Pe
rmanent Mover) and Allah can interfere the (amount of) sales if He wants: “…So seek
(demand) your provision from Allah, and serve Him (perform your prayers) and giv
e thanks to Him..” (29: 17), “…Assuredly, Allah is Able to do all things” (29: 20) Espec
ially in dangerous economic times Muslim accountant does not forget: “…and beside Al
lah there is for you no friend nor helper” (29:22) And accounted prays for succes
s of his/her firm. On the other hand, economic collapse is possible every time (
because of): “…Everything will perish save His countenance” (28: 88) In the event, the
camel of the Prophet, ‘Adwa’ was passed in a race that no any other camel could not
pass that the companions of the Prophet were surprised. But the Prophet said: “It
is a right for Allah to make fallen/declined every thing that it had risen (in
the past)” (Shawkani, 1971, from Bukhari and Ahmad) When a firm began to lose and
it was known that it would go to bankrupty, the accountant’s duty is to help to di
ssolve the firm in an easy way with a minimum loss as far as possible.

Muslim accountants should propagate that the accounting year should be designed
according to Hagira (lunar) calender: “They question you (O Muhammad) about the (
phases of) the moon. Say: “They are seasons fixed for mankind and for the pilgrima
ge.” (2:189) Accountant does not permit/ connive giving a part of the capital (of
the company) as a bribe: “Do not eat up one another’s property among yourselves by u
njust means, nor bribe with it the judges in order that you may knowingly and wr
ongfully deprive others of their possessions.” (2: 188) The (new) product of the c
ompany may be very good but the society/customers may not buy it or a best selle
r product of the company may not been sold in this year: “And when you said, “O Mose
s! We can not endure only one kind of food, so call on your God to give us some
of the varied produce of the earth, gren herbs, cucumbers, garlic, lentils and o
nions! He (Moses) said: “Would you Exchange that which is higher for that which is
lower?” (2: 61) Although Allah used to send manna (meat of the bird of quail) and
salwa (a kind of sweet) every day but they did not them some times later that’s w
hy a prudent accountant must think probable damages/loss and put deposit money i
nto the accounts of the company. Besides marketing faults and mistakes, a natura
l disaster is possible every time: “We (God) shall surely test you with fear and h
unger, and loss of property and lives and crops; but give glad tidings to the st
eadfast. Who say, when a misfortune comes to them: “We belong to Allah, and to Him
we shall return. “(2: 155-156) Peace is encouraged in Quran (4:128) and although
God emphasizes that He does not want war: “…As often as they light a fire for war, A
llah extinguishes it..” (5: 64) but war(s) is also a reality in long history of th
e humanity that’s why a cautious accountant thinks necessary precautions in his/he
r balance sheets/reports. The longest verse of Quran (2: 282) is the foundation
of Islamic accounting that that’s why the history of the ‘recording of all accounts’ d
ates back to the first century of Islam. ‘Not to hide the real numbers’ that ‘kitman (
to hide)’ is prohibited (2:284) in different verses. Accountant must say the truth
(33:70) when CEO, patron, owner or shareholders of the firm sell the company (o
r their lots.) Accountants (should) encourage the CEOs (or shareholders) to give
more charity to the poor and to the workers of the company especially in the ye
ars of much profits is seen in the balance sheets. An account for qarz-i hasan (
lending without interest) (5:12; 57:11,18; 64:17; 2:245; 73:20) in the balance s
heet should be put, and this account should be used for individuals or trustwort
hy companies and the accountant should give struggle for qarz-i hasan to be inst
itutionalized. Muslim accountant must avoid interest operations (2:275-79); s/he
also should control/follow marketing-advertising-accounting operations that are
they compatible to Islamic rules or not?. A Muslim accountant always encourage
s low(er) profit and high(er) production and productivity.
Conlusion. Although there are a lot of studies according to different Christian
sects on accounting in the Western world, but Quranic viewpoint on the duties of
accountant is more detailed. Especially in the today’s ongoing economic crisis, p
owerful ethical principles of Quran on accounting should be much studied.

Abdulbaqi, Muhammad Faud (no date). Mujam’al-Mufahras li-Alfaz al-Qur’an al-Kariym. Çağrı
Yayınları: Istanbul
Bloom Robert, Solotko John(2010). The Foundation of Confucianism in Chinese and
Japanese Accounting (trs. Cengiz Güney-A.Vecdi Can) article in Akademik Bakış Dergisi
(Journal of Academic Viewpoint), issue, 20 (April-May-June) 2010. Jalalabad, Kir
gizistan: www.akademikbakis.org
Shawkani(1971/1391). Nayl al-Awtar, VIII/89. Mustafa al-Babi al-Halabi wa Awlada
h, Qahira
http://www.belhaven.edu/Belhaven/faculty/GeoffreyGoldsmith.pdf
http://www.cbfa.org/Goldsmith.pdf
www.papers.ssrn.com/sol3/papers.cfm

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