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This study discusses the phenomenon of discrepancy in financial statements produced by Islamic community organizations with general accepted accounting principles. Islamic Community Organizations have an important role in building social welfare and improving the quality of life of the ummah in the religious, educational, social, and economic fields. This organization faces challenges in compiling financial statements that meet applicable accounting standards. This phenomenon reflects obstacles in the application of the principles of accountability and transparency that are in line with Islamic ethical values. The approach used in this study is qualitative, interview-based, and document analysis. The object of research is focused on Muhammadiyah University of South Sulawesi. This study reveals the factors that hinder the implementation of accounting standards and offers solutions based on Islamic values. The results of the study show that the low quality of financial statements is influenced by the limitation of skilled human resources, lack of understanding of general accepted accounting principles, weak function of the internal supervision system, and lack of application of Islamic ethics in financial management. These results show that Islamic ethical values in Accounting Practice and increasing financial accountability in Islamic Community Organizations need to be improved. The results of this study are expected to contribute to improving the financial transparency and accountability of Islamic community organizations in accordance with The General Accepted Accounting Standards.