Essay On Shariah Audit

1016 Words5 Pages
Introduction The article discussed about Audit in the Islamic framework has more extensive degree than the present practice due to the other perspectives and ideas implanted in Islamic regulation known as 'shariah '. The two principle issues that are identified with the shariah internal auditor while directing review of Islamic financial institutions. Shariah audit may just be characterized as an audit authentication for shariah regulation. In 1992, the Accounting and Auditing Organization for Islamic Bank and Financial Institutions (AAOIFI) was built up. The principle target of its foundation is to satisfy the requirements of Islamic banks and financial related organizations. In Malaysia, Central Bank of Malaysia (BNM) issued a rule on the Shariah Governance Framework (SGF) 2010, which indicated that shariah audit ought to be done by internal auditor. However, little is known on what ought to be the useful model characterizing issues, for example, scope, degree, review detailing, capabilities and current practices and comprehension of shariah inspecting in Islamic budgetary foundations. This study has been conducted in order to research about the current practice of shariah auditing among IFIs in Malaysia. Research information for this research is…show more content…
All of the participants seriously stated that their biggest challenge in implementing an effective shariah audit is because of the lack of expertise and resources. This indicates that many of internal auditor has enough knowledge regarding Islamic shariah and truly understand the nature of Islamic financial system. One of the possible cause of this problem might be due to the lack of courses provided in high school or college. 3 of the participants blamed the management of the company for not emphasize on the importance of shariah auditing as they feel that shariah auditing is pretty much the same with conventional
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