The precise origin of the accounting records and reports outlined by Pacioli in 1494 and used in the Italian Republics is presently unknown. Historical evidence preserved in Turkey and Egypt indicates that accounting records and reports developed in the early Islamic State were similar to those used in the Italian Republics as outlined by Pacioli in 1494. Furthermore, some of the records and reports used in different parts of the Islamic State are comparable to modern-day books and reports. The religious requirement of Zakat (religious levy) and the increasing responsibilities of the Islamic State were the force behind the development of accounting records and reports by Muslims. The Islamic State was established in 622, and Zakat was imposed on Muslims in the year 2 Hijri'iah (H) (623). The enactment of Zakat necessitated the establishment of the Diwan (office where accounts are held) and the initial development of accounting records and reports. These records were further developed in Addawlatul Abbasi'iah (Abbaside Caliphate) between 132–232 H (750–847) whereby seven accounting specializations were known and practiced. Auditing played a very important role in the Islamic State and was designated as one of the accounting specializations. This paper argues that it is most likely that the commercial links between Muslim traders and their Italian counterparts influenced the development of accounting books in the Italian Republics.

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