Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia

Shariah compliance is utmost importance for the sustainability of Islamic Financial Institutions (IFIs) in the industry as stakeholders will only invest and deal with IFIs that operate within Shariah precepts. As such, Shariah audit is required by Bank Negara Malaysia to provide assurance that IFIs...

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Main Authors:	Zakaria, Nur Azalia, Mohd Ariffin, Noraini, Zainal Abidin, Nor Hafizah
Format:	Article
Language:	English
Published:	Kyoto University 2019
Subjects:	HG1501 Banking HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/72066/ http://irep.iium.edu.my/72066/ http://irep.iium.edu.my/72066/ http://irep.iium.edu.my/72066/1/19%20Zakaria%20et%20al%20ISA%20effectiveness%20Kyoto%20Bulletin.pdf

id	iium-72066
recordtype	eprints
spelling	iium-720662019-07-12T01:50:07Z http://irep.iium.edu.my/72066/ Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia Zakaria, Nur Azalia Mohd Ariffin, Noraini Zainal Abidin, Nor Hafizah HG1501 Banking HG3368 Islamic Banking and Finance Shariah compliance is utmost importance for the sustainability of Islamic Financial Institutions (IFIs) in the industry as stakeholders will only invest and deal with IFIs that operate within Shariah precepts. As such, Shariah audit is required by Bank Negara Malaysia to provide assurance that IFIs indeed do operate on the basis of Shariah principles. Therefore, this conceptual paper proposes the constructs of Shariah audit effectiveness (SAE) in IFIs. This paper reviews and synthesizes prior literature on internal audit effectiveness and Shariah audit in developing the construct of SAE. The construct consists of criteria of SAE as well as its possible determinants. The determinants comprise of top management support, organizational independence and objectivity, and internal Shariah audit process and activities. The development of appropriate measures for SAE is crucial to assist IFIs in monitoring and assessing how well resources are being utilized in the performance of Shariah audit. Effective Shariah audit practice is expected to provide value-added service to ensure IFIs are operating within the limits of Shariah as well as generating halal profits from its financing and investment activities. Kyoto University 2019-03 Article PeerReviewed application/pdf en http://irep.iium.edu.my/72066/1/19%20Zakaria%20et%20al%20ISA%20effectiveness%20Kyoto%20Bulletin.pdf Zakaria, Nur Azalia and Mohd Ariffin, Noraini and Zainal Abidin, Nor Hafizah (2019) Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia. Kyoto Bulletin of Islamic Area Studies, 12. pp. 8-28. ISSN 1881-8323 https://repository.kulib.kyoto-u.ac.jp/dspace/bitstream/2433/240723/1/I.A.S_012_008.pdf 10.14989/240723
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking HG3368 Islamic Banking and Finance
spellingShingle	HG1501 Banking HG3368 Islamic Banking and Finance Zakaria, Nur Azalia Mohd Ariffin, Noraini Zainal Abidin, Nor Hafizah Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia
description	Shariah compliance is utmost importance for the sustainability of Islamic Financial Institutions (IFIs) in the industry as stakeholders will only invest and deal with IFIs that operate within Shariah precepts. As such, Shariah audit is required by Bank Negara Malaysia to provide assurance that IFIs indeed do operate on the basis of Shariah principles. Therefore, this conceptual paper proposes the constructs of Shariah audit effectiveness (SAE) in IFIs. This paper reviews and synthesizes prior literature on internal audit effectiveness and Shariah audit in developing the construct of SAE. The construct consists of criteria of SAE as well as its possible determinants. The determinants comprise of top management support, organizational independence and objectivity, and internal Shariah audit process and activities. The development of appropriate measures for SAE is crucial to assist IFIs in monitoring and assessing how well resources are being utilized in the performance of Shariah audit. Effective Shariah audit practice is expected to provide value-added service to ensure IFIs are operating within the limits of Shariah as well as generating halal profits from its financing and investment activities.
format	Article
author	Zakaria, Nur Azalia Mohd Ariffin, Noraini Zainal Abidin, Nor Hafizah
author_facet	Zakaria, Nur Azalia Mohd Ariffin, Noraini Zainal Abidin, Nor Hafizah
author_sort	Zakaria, Nur Azalia
title	Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia
title_short	Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia
title_full	Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia
title_fullStr	Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia
title_full_unstemmed	Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia
title_sort	internal shariah audit effectiveness and its determinants: case of islamic financial institutions in malaysia
publisher	Kyoto University
publishDate	2019
url	http://irep.iium.edu.my/72066/ http://irep.iium.edu.my/72066/ http://irep.iium.edu.my/72066/ http://irep.iium.edu.my/72066/1/19%20Zakaria%20et%20al%20ISA%20effectiveness%20Kyoto%20Bulletin.pdf
first_indexed	2023-09-18T21:42:11Z
last_indexed	2023-09-18T21:42:11Z
_version_	1777413213394042880

Internal shariah audit effectiveness and its determinants: case of Islamic financial institutions in Malaysia

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