Constructs of shariah audit effectiveness in Islamic financial institutions

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, Nurazalia, Mohd Ariffin, Noraini, Zainal Abidin , Nor Hafizah
Format:	Conference or Workshop Item
Language:	English
Published:	2015
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/47531/ http://irep.iium.edu.my/47531/ http://irep.iium.edu.my/47531/1/47531_edited.pdf

id	iium-47531
recordtype	eprints
spelling	iium-475312018-05-23T02:16:34Z http://irep.iium.edu.my/47531/ Constructs of shariah audit effectiveness in Islamic financial institutions Zakaria, Nurazalia Mohd Ariffin, Noraini Zainal Abidin , Nor Hafizah HG 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 comprises 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. 2015 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/47531/1/47531_edited.pdf Zakaria, Nurazalia and Mohd Ariffin, Noraini and Zainal Abidin , Nor Hafizah (2015) Constructs of shariah audit effectiveness in Islamic financial institutions. In: 6th IIUM International Accounting Conference VI (INTAC VI), 28th-29th Oct. 2015, IIUM Gombak, Kuala Lumpur. (Unpublished) http://www.intac6.com/web/papers.html
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance
spellingShingle	HG Finance Zakaria, Nurazalia Mohd Ariffin, Noraini Zainal Abidin , Nor Hafizah Constructs of shariah audit effectiveness in Islamic financial institutions
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 comprises 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	Conference or Workshop Item
author	Zakaria, Nurazalia Mohd Ariffin, Noraini Zainal Abidin , Nor Hafizah
author_facet	Zakaria, Nurazalia Mohd Ariffin, Noraini Zainal Abidin , Nor Hafizah
author_sort	Zakaria, Nurazalia
title	Constructs of shariah audit effectiveness in Islamic financial institutions
title_short	Constructs of shariah audit effectiveness in Islamic financial institutions
title_full	Constructs of shariah audit effectiveness in Islamic financial institutions
title_fullStr	Constructs of shariah audit effectiveness in Islamic financial institutions
title_full_unstemmed	Constructs of shariah audit effectiveness in Islamic financial institutions
title_sort	constructs of shariah audit effectiveness in islamic financial institutions
publishDate	2015
url	http://irep.iium.edu.my/47531/ http://irep.iium.edu.my/47531/ http://irep.iium.edu.my/47531/1/47531_edited.pdf
first_indexed	2023-09-18T21:07:37Z
last_indexed	2023-09-18T21:07:37Z
_version_	1777411038890688512

Constructs of shariah audit effectiveness in Islamic financial institutions

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