Question

Auditing Riba-Based Transactions

46

Question

Assalamu Alaikum,I am in financial auditing profession, my work does not require me record any transaction, approve or witness that is riba based, however during the course of audit I regularly come across riba based account balances such as loans and leases etc. As an auditor often I need to calculate and verify the accuracy of the loan balances and riba paid/accrued on those balance in order to incorporate into the audited financial report(although the calculations are done by our clients and we only do test calculations to ascertain the accuracy

Related Fatwa

Ruling on Profits in Halal Business with Haram Income

Benefitting from income earned from a job that involves selling both permissible and forbidden items, such as pork

Ruling on using former employer's contract template in business

Working in a Company which Markets Machinery with Dual Use in Halal and Haram Activities

Ruling on ill-gotten money due to cheating

Ruling on working in companies whose primary activity is permissible

Ruling on Working with a Company Engaged in Mixed Activities

Accepted Answer

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

If it is possible for you to limit your auditing to permissible transactions and avoid auditing those that are forbidden and involve usury, then it is permissible for you to continue your work.

However, if the nature of your work requires auditing everything assigned to you, including forbidden transactions, then it is not permissible for you to work in what you mentioned. This is because it involves assisting in sin, based on the saying of Allah the Almighty (which means): {And do not help one another in sin and aggression.} [Quran 5: 2]

Ibn Taymiyyah said in Majmoo’ Al-Fatawa: ‘If a person assists in the disobedience of Allah, he becomes sinful because he is aiding in sin and aggression.’ That is why the Prophet cursed wine and those who press it, those for whom it is pressed, those who carry it, deliver it, sell it, buy it, serve it, and consume its price. Most of these, like the one who carries or serves it, assist in its consumption. This is why it is forbidden to sell weapons to those who use them in a forbidden fight, such as fighting against Muslims or engaging in strife.’

Allah knows best.

Fatwa

Auditing Riba-Based Transactions

Question

Answer

Related Fatwa

Ruling on Profits in Halal Business with Haram Income

Benefitting from income earned from a job that involves selling both permissible and forbidden items, such as pork

Ruling on using former employer's contract template in business

Working in a Company which Markets Machinery with Dual Use in Halal and Haram Activities

Ruling on ill-gotten money due to cheating

Ruling on working in companies whose primary activity is permissible

Ruling on Working with a Company Engaged in Mixed Activities

Search Fatwa

Fatwa Subject

Categories

Multimedia

Special Folders

Services