Is it permissible for a charted accountant to record transactions involving interest?

Published as An Accountant Recording Previous Interest Transactions

· 17 Muharram 1446 AH1 min readEnglish

Question

Is it permissible for a charted accountant to record transactions involving interest?

Answer

In a Hadith Rasulullah Sallallahu Alaihi Wa Sallam has cursed the one who consumes interest, pays interest, the one who draws up the document in which the agreement of interest is finalized (between the transacting parties) and those who are witness to such a transaction.

Since seeing that an accountant does not draw up the actual document wherein the agreement of interest is finalized between the parties involved; but rather merely records it in the respective ledgers, journals and balance sheets after the agreement has already taken place between the transacting parties; there would be leeway to render this service. In other words, the chartered accountant is merely recording or doing an audit of an interest-bearing transaction that has already taken place (in the past), thus he will not fall under the ambit of the curse that is directed at the one who draws up the document in which the agreement of interest is finalized between the transacting parties.

Notwithstanding its permissibility, wherever a Muslim chartered accountant can avoid even recording such a past transaction, he should preferably avoid it.

Approved by
Mufti Muhammed Saeed Motara Saheb D.B.
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Darul Ifta, Darul Uloom Azaadville. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

People also ask

Can a Muslim work as an accountant or auditor?

“1. The client has hired your services as an accountant to calculate the income tax due on his earnings and to submit returns on his behalf. There is no harm in offering such a service to the public in lieu of a fee since…”

Ibn Masood · 58 fatawa from 5 Darul Iftas on this

What the Darul Iftas say