This paper aims to examine the financial reporting and budgeting
practices of qaryah mosques in Kuala Terengganu, a state in the east of
Peninsular Malaysia. Data was collected using a mixed method
(quantitative and qualitative) approach. The questionnaire was
disseminated to qaryah mosques in Kuala Terengganu and 39 responded. To
address the limitations of a questionnaire survey, semi-structured
interviews were then conducted with a few of the respondents. The
results revealed that qaryah mosques in Kuala Terengganu do have a
satisfactory system in place in terms of their financial reporting
practices. However, budgetary control practices appear to be lacking.
This indicates accounting, as is practiced by qaryah mosques in Kuala
Terengganu appears to be limited to financial accounting. Hence, the
financial management in qaryah mosques needs to be improved so that the
risk of embezzlement can be reduced.