Auditing usurious bank accounts in company records
8-12-2016 | IslamWeb
Question:
What is the ruling on working in auditing offices, knowing that the job of the auditor is to check the company's accounts and budgets, which may contain records of bank accounts or interest, but that he is not the one who wrote these accounts or dealt with them at all; rather, he is only reviewing or checking them? All of that is for the purpose of issuing a report on the extent to which this organisation is adhering to international guidelines with regard to the outcome of its activities and to issue financial records.
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, sallallahu ‘alayhi wa sallam, is His slave and Messenger.
It is impermissible to audit the usurious bank accounts of companies because of what it involves of approving the sin or helping others to commit it.
The Standing Committee for Issuing Fataawa was asked:
"I have a legal accounting office in which we review the financial statements of institutions and companies from the accounting records kept by the institution. The purpose is to show the results of the reviews at the end of the fiscal year in the form of budgets and reports on the financial situation of the institution. I have some questions which I hope that you will answer:
1- When reviewing the company’s books, I may see some of the accounts that the company has with banks, and these accounts may show loans, i.e. the company owes money as a result of getting a loan from the bank or as a result of being overdrawn, which means that the bank starts charging interest on that, i.e. usury. The nature of our work is to show these figures alongside other items in the budget, and this is based on the books and records of the institution and bank statements, and we cannot omit it from the other accounts. We have to show it so that the budget reflects the real situation of the company. Do we bear a sin for that, and are we regarded as witnesses to interest?"
The Committee replied, "It is not permissible for you to conduct accounting for what you mentioned in the question because of what it involves of cooperating in sin and transgression."
Allah knows best.