Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk

Shari’ah audit and Shari’ah review functions provide assurance to stakeholders of lslamic banks but at different lines of defense in mitigating Shari’ah non-compliance events. The paper compares the practice of Shari’ah audit and Shari’ah review in a full-fledged Islamic bank in Malaysia using case...

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Main Authors:	Zainal Abidin, Nor Hafizah, Mohd Ariffin, Noraini
Format:	Monograph
Language:	English
Published:	2018
Subjects:	HF5601 Accounting. Bookkeeping HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/66536/ http://irep.iium.edu.my/66536/3/IAREF%20Final%20Report_Shariah%20Audit.pdf

id	iium-66536
recordtype	eprints
spelling	iium-665362018-10-18T07:41:24Z http://irep.iium.edu.my/66536/ Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk Zainal Abidin, Nor Hafizah Mohd Ariffin, Noraini HF5601 Accounting. Bookkeeping HG3368 Islamic Banking and Finance Shari’ah audit and Shari’ah review functions provide assurance to stakeholders of lslamic banks but at different lines of defense in mitigating Shari’ah non-compliance events. The paper compares the practice of Shari’ah audit and Shari’ah review in a full-fledged Islamic bank in Malaysia using case study method where the informants are Shari’ah auditors and reviewers. The study concentrates on the scope of audit, techniques adopted by the internal auditors and the reporting channel for audit findings and report. Based on discussion with internal Shari’ah auditors and reviewers, Shari’ah audit practice resembles Shari’ah review in terms of compliance checking against Shari’ah Resolution and Shari’ah Compliance manual, rather than focusing on Shari’ah governance, risk management and internal control for Shari’ah compliance. The findings reflect Shari’ah audit practice at an early state of adoption, where the emphasis is more on compliance checking rather than scrutinizing on internal control measures as the measures are not well implemented and developed within the Islamic bank. Further, Shari’ah auditors’ necessary skills to perform Shari’ah audit in a holistic manner is still in progression as there is lack of Shari’ah audit certification programme available in the industry. The findings indicate the urgent need for the regulator to issue technical guidance on scope and performance of Shari’ah audit for a more effective and value added role of Shari’ah auditors. Additionally, a formalized training and certification programme is also needed to enhance the competency level of Shari’ah auditors. 2018-09-26 Monograph NonPeerReviewed application/pdf en http://irep.iium.edu.my/66536/3/IAREF%20Final%20Report_Shariah%20Audit.pdf Zainal Abidin, Nor Hafizah and Mohd Ariffin, Noraini (2018) Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk. Research Report. UNSPECIFIED. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5601 Accounting. Bookkeeping HG3368 Islamic Banking and Finance
spellingShingle	HF5601 Accounting. Bookkeeping HG3368 Islamic Banking and Finance Zainal Abidin, Nor Hafizah Mohd Ariffin, Noraini Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk
description	Shari’ah audit and Shari’ah review functions provide assurance to stakeholders of lslamic banks but at different lines of defense in mitigating Shari’ah non-compliance events. The paper compares the practice of Shari’ah audit and Shari’ah review in a full-fledged Islamic bank in Malaysia using case study method where the informants are Shari’ah auditors and reviewers. The study concentrates on the scope of audit, techniques adopted by the internal auditors and the reporting channel for audit findings and report. Based on discussion with internal Shari’ah auditors and reviewers, Shari’ah audit practice resembles Shari’ah review in terms of compliance checking against Shari’ah Resolution and Shari’ah Compliance manual, rather than focusing on Shari’ah governance, risk management and internal control for Shari’ah compliance. The findings reflect Shari’ah audit practice at an early state of adoption, where the emphasis is more on compliance checking rather than scrutinizing on internal control measures as the measures are not well implemented and developed within the Islamic bank. Further, Shari’ah auditors’ necessary skills to perform Shari’ah audit in a holistic manner is still in progression as there is lack of Shari’ah audit certification programme available in the industry. The findings indicate the urgent need for the regulator to issue technical guidance on scope and performance of Shari’ah audit for a more effective and value added role of Shari’ah auditors. Additionally, a formalized training and certification programme is also needed to enhance the competency level of Shari’ah auditors.
format	Monograph
author	Zainal Abidin, Nor Hafizah Mohd Ariffin, Noraini
author_facet	Zainal Abidin, Nor Hafizah Mohd Ariffin, Noraini
author_sort	Zainal Abidin, Nor Hafizah
title	Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk
title_short	Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk
title_full	Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk
title_fullStr	Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk
title_full_unstemmed	Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk
title_sort	internal shari’ah audit in malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk
publishDate	2018
url	http://irep.iium.edu.my/66536/ http://irep.iium.edu.my/66536/3/IAREF%20Final%20Report_Shariah%20Audit.pdf
first_indexed	2023-09-18T21:34:28Z
last_indexed	2023-09-18T21:34:28Z
_version_	1777412728601706496

Internal shari’ah audit in Malaysia: perceived effectiveness, determinants and implication on non- shari’ah non-compliance risk

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