Assalamualaikum warahmatullah wabarakatuh
Thanks Dr. Rizwan Bakar (IIUM Accounting Alumni) for commenting on previous posting. We should discuss further the issues through email soon.
Last week on the 14th of October, I was invited to share my thought on Shariah Audit at the National Internal Audit Conference. This event was organised by the Institute of Internal Auditors Malaysia (IIAM) and was held at the KL Convention Centre. It was well attended by internal auditors from many different types of industries.
The interest on Shariah Audit is emerging very fast but many are not sure how to go about. Those internal auditors working in Islamic Banks, Takaful firms and other Islamic institutions have conducted some forms of Shariah Audit. They faced many challenges from the planning stage to properly develop Shariah Audit Programs to how to effectively handle Shariah non-compliance risks.
I shared my views on the issues facing Islamic financial industry especially on properly offering and managing Islamic financial services. The challenges such as linking Shariah risk management, Shariah internal control, and Shariah compliance review with Shariah Audit. I can't share the issues fully here. I also deliberated on the role of Shariah Committee, the Board and the Management to properly facilitate the development of Shariah audit. Otherwise, many Shariah non-compliance issues will not be properly addressed. Ultimately, it may affect the integrity and the credibility of the Islamic institutions.
I also provoked the participants of the fact that IIA's Code of Ethics and COSO's Framework are insufficient to address the ethical issues and internal control issues in Islamic institutions. I also shared the AAOIFI's Code of Ethics that to a certain extent contribute towards a different paradigm of Islamic value system in shaping the internal auditors.
As usual, moving forward, I hope more of the emerging issues of Shariah Audit will be addressed by the regulatory authority such as BNM. However, from the academic view point, there is a lot of potential to close the knowledge gap on Shariah Audit.
Thanks Dr. Rizwan Bakar (IIUM Accounting Alumni) for commenting on previous posting. We should discuss further the issues through email soon.
Last week on the 14th of October, I was invited to share my thought on Shariah Audit at the National Internal Audit Conference. This event was organised by the Institute of Internal Auditors Malaysia (IIAM) and was held at the KL Convention Centre. It was well attended by internal auditors from many different types of industries.
The interest on Shariah Audit is emerging very fast but many are not sure how to go about. Those internal auditors working in Islamic Banks, Takaful firms and other Islamic institutions have conducted some forms of Shariah Audit. They faced many challenges from the planning stage to properly develop Shariah Audit Programs to how to effectively handle Shariah non-compliance risks.
I shared my views on the issues facing Islamic financial industry especially on properly offering and managing Islamic financial services. The challenges such as linking Shariah risk management, Shariah internal control, and Shariah compliance review with Shariah Audit. I can't share the issues fully here. I also deliberated on the role of Shariah Committee, the Board and the Management to properly facilitate the development of Shariah audit. Otherwise, many Shariah non-compliance issues will not be properly addressed. Ultimately, it may affect the integrity and the credibility of the Islamic institutions.
I also provoked the participants of the fact that IIA's Code of Ethics and COSO's Framework are insufficient to address the ethical issues and internal control issues in Islamic institutions. I also shared the AAOIFI's Code of Ethics that to a certain extent contribute towards a different paradigm of Islamic value system in shaping the internal auditors.
As usual, moving forward, I hope more of the emerging issues of Shariah Audit will be addressed by the regulatory authority such as BNM. However, from the academic view point, there is a lot of potential to close the knowledge gap on Shariah Audit.
