SHARI’AH AUDIT FOR ISLAMIC FINANCIAL INSTITUTIONS – A PRIMER

A MINI GUIDE TO SHARI’AH AUDIT FOR ISLAMIC FINANCIAL INSTITUTIONS – A PRIMER
The lslamic financial system has progressed leaps and bounds in establishing regulatory and supervisory frameworks. This has been contributed by establishments of’ AAOIFI and IFSB as well as other local regulatory authorities. This guide is looking into what should constitute of the Shari ‘ah audit. The Shari ’ah audit is like other audit which meant to provide adequate disclosure without constraining these Islamic Financial Institutions.
The guide identifies that the exercise of Shari ‘ah audit is first and foremost for the Shari ’ah compliance of the IFIs’ operations. It also highlights a few challenges faced by the industry such as management buy in, stakeholder awareness, proper framework and standard, training and understanding of Shari’ah related risks.
As the stakeholders and Islamic finance become more sophisticated, Shariah audit will be absolute necessity in order to satisfy their level of confidence. This is evidenced by the establishment of stock screening indexes such as Dow Jones Islamic Indexes.

• AUTHOR: SYED ALWI MUHAMMED SULTAN
• lSBN 98314278518
• PUBLICATIONS : CERT PUBLICATIONS