This document discusses Shariah audits for Islamic financial institutions. It explains that Shariah audits periodically assess compliance with Shariah principles to ensure sound internal controls and add value. The scope includes auditing financial statements, compliance, organizational structures, and reviewing Shariah governance. The process involves understanding business activities, developing an audit plan, obtaining relevant sources, conducting periodic audits, communicating results to committees, and providing recommendations.
This document discusses Shariah audits for Islamic financial institutions. It explains that Shariah audits periodically assess compliance with Shariah principles to ensure sound internal controls and add value. The scope includes auditing financial statements, compliance, organizational structures, and reviewing Shariah governance. The process involves understanding business activities, developing an audit plan, obtaining relevant sources, conducting periodic audits, communicating results to committees, and providing recommendations.
This document discusses Shariah audits for Islamic financial institutions. It explains that Shariah audits periodically assess compliance with Shariah principles to ensure sound internal controls and add value. The scope includes auditing financial statements, compliance, organizational structures, and reviewing Shariah governance. The process involves understanding business activities, developing an audit plan, obtaining relevant sources, conducting periodic audits, communicating results to committees, and providing recommendations.
This document discusses Shariah audits for Islamic financial institutions. It explains that Shariah audits periodically assess compliance with Shariah principles to ensure sound internal controls and add value. The scope includes auditing financial statements, compliance, organizational structures, and reviewing Shariah governance. The process involves understanding business activities, developing an audit plan, obtaining relevant sources, conducting periodic audits, communicating results to committees, and providing recommendations.
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AUD 610
Shariah Audit
Shariah Principles Are the foundation for the practice of Islamic Finance through the observance of the tenets, conditions and principles espoused by shariah Comprehensive compliance with shariah principles would bring confidence to the general public and the financial markets on the credibility of the Islamic finance operations.
Shariah Audit Shariah audit refers to the periodical assessment and objective assurance designed to add value and improve the degree of compliance in relation to the Islamic Fin Institutions (IFI) business operations, with the main objective of ensuring a sound and effective internal control system for Shariah compliance. The function shall be performed by internal auditors, who have acquired adequate shariah related knowledge and training.
Scope of Shariah Audit
Audit of fin statements of IFI. In the event that the audit is undertaken by external auditor, IFI has to be satisfied that the scope of audit by the external auditor with regard of shariah audit is comprehensive. Compliance audit on organizational structure, people, processes and IT systems. Review of the adequacy of Shariah governance process.
Process of shariah audit
Should cover:
Understanding the biz activities of the IFI
to allow for better scoping of an audit exercise i.e understandability and relevance of activities. Developing a comprehensive internal audit program or plan. Shall include objectives, scope, personnel assignment, sampling, control and duration as well as establish proper audit processes, policies and procedures of IFIs operations.
Process of shariah audit
Obtaining and making reference to
relevant sources, including the Shariah Audit Committees publish rulings, the Shariah Committees decisions, fatwas, guidelines, the shariah audit results and internal Shariah checklist Conducting shariah audit on a periodical basis.
Process of shariah audit
Communicating results of any assessment
or findings arising from the Shariah audit to the Board Audit Committee and Shariah committee. Providing recommendations on rectification measures taken as well as follow up on the implementation by the IFI.
