2013, Yusuf Karbhari, Sazali Abdul Wahab, Shamsher Mohamad Ramadili Mohd, Zulkarnain Muhamad Sori

Evidence of audit failures documented worldwide have led to major criticism of the auditing professions' independence and exposed its implication on shareholders and stakeholders' interests. External auditors are expected not only be independent but more importantly must be seen to be independent when examining and attesting clients' financial statements. Auditors are expected to decide on reporting strategies without any influence from their clients' management.

2015, Siti Zaidah Turmin, Mohammad Noor Hisham Osman, Ahmed Razman Abdul Latiff, Zulkarnain Muhamad Sori

This book integrates empirical studies and conceptual discussion in the field of accounting and finance in Malaysia and international setting. The aim of this book is to share findings of empirical results as well as conceptual discussion and to provide reading and reference materials on various accounting and finance topics to undergraduate and postgraduate students, researchers, practitioners and policy makers through relevant information provided. This book consists of ten chapters. Specifically, it is presented into three parts, namely corporate internet reporting and social responsibility reporting, auditor independence and corporate governance and Islamic finance.

2019, Shamsher Mohamad Ramadili Mohd, Zulkarnain Muhamad Sori

This chapter provides new findings to accounting and finance literature, where, it compares the conceptual framework of both of the MASB- and the AAOIFI- in the context of financial reporting of Islamic financial institutions (IFls). The conceptual framework or some authors referred as "accounting constitution" set the tone for a consistent accounting standards and become a reference point for developing future standards for financial accounting and reporting (Barker et al., 2014; Abela et al., 2014; Holzmann & Munter, 2014 (Sutton et al., 2015; Gebhardt et aI., 2014; Norby, 1977; Gore & Zimmerman, 2007). In this context, more than 120 countries (including major players in Islamic finance like Saudi Arabia, Malaysia and many others) are adopting IASB' financial reporting regime in financial reporting of IFIs, and only six countries like Bahrain, Jordan, Lebanon, Oman, Qatar and Sudan are employing the AAOIFI accounting standards ...

2013, Abdullah Al Mamun, Sazali Abdul Wahab, Zulkarnain Muhamad Sori

This study was undertaken to assess the impact of Amanah Ikhtiar Malaysia's (AIM) microcredit program on microenterprise assets possessed by poor women in urban Peninsular Malaysia. In order to fulfill the above mentioned objective, in an attempt to increase understanding on the subject matter and contribute to the existing knowledge, this study employed a cross-sectional design with a stratified random sampling method. The results of this study reveal that the current market value of enterprise assets and vehicles owned by old respondents was relatively higher than that of new respondents. The findings also show that the mean market value of microenterprise assets owned by old respondents was significantly higher than that of new respondents. This study suggests that AIM should, therefore, focus on providing adequate training, flexible and diversified loan programs, and increase outreach. The government of Malaysia also needs to review policies to provide a favorable environment in order to promote self-sustainable competitive microenterprises.

2008, Ramadili Mohd, Shamsher Mohamad, Shamsher Mohamad Ramadili Mohd, Zulkarnain Muhamad Sori

This study provides new evidence on the relationship between external audit price and corporate governance of the largest (based on market capitalization) 100 listed firms on both the main and second board of the Bursa Malaysia (BMB) (previously known as the Kuala Lumpur Stock Exchange). The findings show that for main board companies, external audit price is positively and significantly associated with corporate size, complexity and internal governance variable (i.e. director's remuneration). For the second board firms, complexity, corporate size and internal governance variables (i.e. proportion of non-executive directors to total directors) were important determinants of external audit pricing. External audit price had a significant negative relationship with individual shareholders ownership for both main and second board companies, and companies' age for companies listed on the second board.

2012, Ng Yan Ling, Lee Teck Heang, Zulkarnain Muhamad Sori

Malaysia experienced rapid economic growth at an average annual Gross Domestic Product (GDP) growth of 8.5% during the 1990s due to its financial liberalization policy. This rapid growth came to a halt after the impact of the Asian financial crisis occurred on 1997-1998 causing the economy into recession. This prompted the Malaysian government to urgently develop a sophisticated capital market backed by an efficient regulatory framework to instil investors' confidence in order to attract capital inflow from the local and foreign investors to restart the economy.

2015, Mohammad Noor Hisham Osman, Siti Zaidah Turmin, Ahmed Razman Abdul Latiff, Zulkarnain Muhamad Sori

This book contains a compilation of studies on selected issues in accounting and finance. These studies are conducted in Malaysian context except one study based in Egypt. The studies cover significant topics in auditing, taxation, accounting education, corporate governance and finance.

2019, Mahmoud Al Homsi, Alam Asadov, Zulkarnain Muhamad Sori

This chapter provides the discussion on accounting issues for musharakah mutanaqisah (MM) home financing in the case of Malaysia. Though the MM mode of financing has addressed the 'ambiguities and risk issues in conventional mortgage financing and the controversy that surrounds other financing packages like al Bai Bithaman Ajil and Bay al Inah (Mydin-Meera & Abdul-Razak, 2009), there are some practical issues in operating this mode of financing, as Islamic banks operate this type of contract more closely to conventional practice, thereby lacking the spirit of the contract itself ...

2019, Mahmoud Al Homsi, Shamsher Mohamad Ramadili Mohd, Zulkarnain Muhamad Sori

Documented evidence on conventional bond markets shows negative market reaction to bond credit rating downgrade and no reaction to credit rating upgrade. Despite the fact that sukuk issuances make up more than 58.8% of the value of outstanding bonds in the country and Malaysia issues at least half of the world's sukuk and is widely recognized as a leader in the sukuk space, there is no documented evidence on the stock market reaction to sukuk credit rating changes. This study analyzed the wealth effect of sukuk credit rating changes in Malaysia using 16 sukuk upgrades and 20 sukuk downgrades for the period 2000-2014. The evidence shows negative market reaction to downgrades and positive significant reaction to sukuk rating upgrade. This symmetrical market reaction to sukuk credit rating changes implies the market was indifferent between bonds and sukuk from the credit rating perspective. This finding supports the notion that the credit rating agencies are Shariah-neutral when rating these capital market instruments.

2019, Zulkarnain Muhamad Sori

Islamic finance industry has grown rapidly over the last few years, where the 2018 Islamic Finance Development Report by Thomson Reuters reported that the year on year growth by of 11% to US$2.4 trillion in assets in 2017 and predicted that it would grow to $3.8tn of assets by 2023 (Thomson Reuters, 2018). Realising the importance of the industry, this book examines various issues on Accounting and Governance of Islamic financial institutions. In fact, the unique feature of Islamic financ that is based on the shariah principle warrants critical examination on various issues relating to accounting of Islamic financial transactions. Basically, business dealings are prohibited to contain component of riba (interest), gharar (uncertainty) and maysir (gambling/speculation), and trading of actual assets and share the risk between participants are encouraged. Thus, scholars posited different views as to whether the key concept of current accounting principles such as time value of money, substance over form, principles of probability and accrual basis are permissible. The book also covers accounting issues on various Islamic finance products and Shariah governance of Islamic financial institutions.

2012, Ng Yan Ling, Shamsher Mohamad Ramadili Mohd, Zulkarnain Muhamad Sori

In the first two-thirds of the 1990s, Malaysia experienced rapid economic growth at an average annual Gross Domestic Product (GOP) growth of 8.5%; due to its financial liberalization policy that encourage greater participation of foreign direct investment and strengthening condition of exports. This rapid growth came to a halt with the onset of Asian financial crisis in mid-1997. During that time, the combination of sudden reversals in the net capital flow, exchange rate depreciation/devaluation, crash in stock market, fire sales on asset, corporate distress, and credit contraction lead the economy into recession.