International Conference on Rural Development and Entrepreneurship 2019: Enhancing Small Business and Rural Development Toward Industrial Revolution 4.0 Vol. 5 No.1 ISBN: 978-623-7144-28-1 1357 THE EFFECT OF THE ROLE OF THE INTERNAL CONTROL SYSTEM ON FINANCIAL REPORTING ACCOUNTABILITY MODERATION OF THE ZAKAT ACCOUNTING BASED ON PSAK 109 Bobby Wijaya Daulay 1 , Hari Setiyawati 2* , Erna Setiany 3 1 Postgraduate Program, Universitas Mercu Buana 2 Postgraduate Program, Universitas Mercu Buana 3 Postgraduate Program, Universitas Mercu Buana Abstract. This study aims to examine and analyze the influence of the role of the internal control system on financial reporting accountability at the Amil Zakat Institution in the accounting moderation of zakat based on PSAK 109. This research was carried out through surveys in which the research model was designed to examine financial reporting accountability in amil zakat and amil institutions zakat in DKI Jakarta and Banten, related to the role of the internal control system. The benefits of this study are to contribute scientifically to the science of sharia accounting specifically accounting for zakat and assist the accounting department in preparing financial statements in accordance with PSAK No. 109 in the implementation of its duties related to increasing accountability in financial reporting. The results of this study state that the role of the internal control system has a significant effect on the accountability of financial reporting. If moderated by compliance with the accounting application of zakat PSAK No.109, the role of the internal control system remains a significant influence on the accountability of financial reporting. Keywords: Financial Reporting Accountability, Role of the Internal Control System and Accounting for Zakat PSAK No.109. 1. INTRODUCTION Accountability is a well-known term in the State Administration of the Republic of Indonesia as a driver of the establishment of Law No. 28 of 1999 concerning the Implementation of a clean and free country from Corruption, Collusion and Nepotism. In the Big Indonesian Dictionary of accountability is "about things that are responsible or circumstances that can be held accountable" (KBBI, 2017). Whereas accounting is the art of recording, classifying, summarizing, interpreting, and communicating in certain ways and in monetary measures, transactions and economic events of a legal or social entity (Megawati & Trisnawati, 2014). One of the factors that did not reach the potential of zakat receipts in Indonesia was the decision of the muzaki not to distribute zakat, infaq and shodaqoh to existing zakat management organizations which were still low trust factors in the organization, causing the muzaki to directly channel their zakat funds to those who are entitled. Muzaki's distrust factor in the management of zakat funds by zakat management organizations, both the Amil Zakat Agency (BAZ) and the Amil Zakat Institution (LAZ) in Indonesia, due to lack of transparency in the Financial Report, accountability of BAZ and LAZ, and muzaki did not get greater benefits if the zakat funds are channeled through BAZ and LAZ compared to direct distribution (Septiarini, 2011). * Corresponding Author, Email: hari_setiyawati@mercubuana.ac.id