The measurement of effective internal shariah audit function in Islamic financial institutions

Assurance of Sharīʿah compliance through the Sharīʿah audit function is crucial for enhancing the integrity of Islamic Financial Institutions (IFIs). Effective Sharīʿah audit function during periodical assessment will ensure effective internal control system for Sharīʿah compliance in IFIs. This pap...

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Main Authors:	Ab Ghani, Nur Laili, Mohd Ariffin, Noraini, Abdul Rahman, Abdul Rahim
Format:	Article
Language:	English English
Published:	Kulliyyah of Economics, International Islamic University Malaysia 2019
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/73044/ http://irep.iium.edu.my/73044/ http://irep.iium.edu.my/73044/1/73044_The%20measurement%20of%20effective%20internal%20shariah.pdf http://irep.iium.edu.my/73044/6/73044_THE%20MEASUREMENT%20OF%20EFFECTIVE%20INTERNAL%20SHARI%20AH%20_wos.pdf

id	iium-73044
recordtype	eprints
spelling	iium-730442020-03-18T07:13:20Z http://irep.iium.edu.my/73044/ The measurement of effective internal shariah audit function in Islamic financial institutions Ab Ghani, Nur Laili Mohd Ariffin, Noraini Abdul Rahman, Abdul Rahim HG3368 Islamic Banking and Finance Assurance of Sharīʿah compliance through the Sharīʿah audit function is crucial for enhancing the integrity of Islamic Financial Institutions (IFIs). Effective Sharīʿah audit function during periodical assessment will ensure effective internal control system for Sharīʿah compliance in IFIs. This paper examines the measurement of effective internal Sharīʿah audit function in IFIs. It critically reviews the emerging literature on the importance of eight components for measuring effective internal Sharīʿah audit function. The components are Sharīʿah audit objective, Sharīʿah audit scope, Sharīʿah audit and governance, Sharīʿah audit charter, competency of internal Sharīʿah auditors, Sharīʿah audit process, reporting requirements and independence. These components are important for achieving effective internal control over Sharīʿah compliance. The study also performs a structured interview with Islamic financial experts to validate the measurement before it is further examined in future empirical studies. The main argument of this paper is that highly effective internal Sharīʿah audit function leads to inclusive opinion on reasonable assurance of Sharīʿah compliance. Assurance of Sharīʿah compliance should enhance stakeholder confidence and satisfy the growing demand for IFIs accountability and sustainability. Kulliyyah of Economics, International Islamic University Malaysia 2019-06-29 Article PeerReviewed application/pdf en http://irep.iium.edu.my/73044/1/73044_The%20measurement%20of%20effective%20internal%20shariah.pdf application/pdf en http://irep.iium.edu.my/73044/6/73044_THE%20MEASUREMENT%20OF%20EFFECTIVE%20INTERNAL%20SHARI%20AH%20_wos.pdf Ab Ghani, Nur Laili and Mohd Ariffin, Noraini and Abdul Rahman, Abdul Rahim (2019) The measurement of effective internal shariah audit function in Islamic financial institutions. International Journal of Economics, Management and Accounting, 27 (1). pp. 141-165. E-ISSN 2462-1420 https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/600/319
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Ab Ghani, Nur Laili Mohd Ariffin, Noraini Abdul Rahman, Abdul Rahim The measurement of effective internal shariah audit function in Islamic financial institutions
description	Assurance of Sharīʿah compliance through the Sharīʿah audit function is crucial for enhancing the integrity of Islamic Financial Institutions (IFIs). Effective Sharīʿah audit function during periodical assessment will ensure effective internal control system for Sharīʿah compliance in IFIs. This paper examines the measurement of effective internal Sharīʿah audit function in IFIs. It critically reviews the emerging literature on the importance of eight components for measuring effective internal Sharīʿah audit function. The components are Sharīʿah audit objective, Sharīʿah audit scope, Sharīʿah audit and governance, Sharīʿah audit charter, competency of internal Sharīʿah auditors, Sharīʿah audit process, reporting requirements and independence. These components are important for achieving effective internal control over Sharīʿah compliance. The study also performs a structured interview with Islamic financial experts to validate the measurement before it is further examined in future empirical studies. The main argument of this paper is that highly effective internal Sharīʿah audit function leads to inclusive opinion on reasonable assurance of Sharīʿah compliance. Assurance of Sharīʿah compliance should enhance stakeholder confidence and satisfy the growing demand for IFIs accountability and sustainability.
format	Article
author	Ab Ghani, Nur Laili Mohd Ariffin, Noraini Abdul Rahman, Abdul Rahim
author_facet	Ab Ghani, Nur Laili Mohd Ariffin, Noraini Abdul Rahman, Abdul Rahim
author_sort	Ab Ghani, Nur Laili
title	The measurement of effective internal shariah audit function in Islamic financial institutions
title_short	The measurement of effective internal shariah audit function in Islamic financial institutions
title_full	The measurement of effective internal shariah audit function in Islamic financial institutions
title_fullStr	The measurement of effective internal shariah audit function in Islamic financial institutions
title_full_unstemmed	The measurement of effective internal shariah audit function in Islamic financial institutions
title_sort	measurement of effective internal shariah audit function in islamic financial institutions
publisher	Kulliyyah of Economics, International Islamic University Malaysia
publishDate	2019
url	http://irep.iium.edu.my/73044/ http://irep.iium.edu.my/73044/ http://irep.iium.edu.my/73044/1/73044_The%20measurement%20of%20effective%20internal%20shariah.pdf http://irep.iium.edu.my/73044/6/73044_THE%20MEASUREMENT%20OF%20EFFECTIVE%20INTERNAL%20SHARI%20AH%20_wos.pdf
first_indexed	2023-09-18T21:43:34Z
last_indexed	2023-09-18T21:43:34Z
_version_	1777413300245495808

The measurement of effective internal shariah audit function in Islamic financial institutions

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