Accounting and Auditing Standards for Islamic Financial Institutions

2021 ◽  
Author(s):  
Mohd Ma’Sum Billah
Keyword(s):  
Financial Institutions ◽  
Auditing Standards ◽  
Islamic Financial Institutions

scholarly journals ISSUES AND CHALLENGES OF SHARIAH COMPLIANCE AUDITING IN ISLAMIC FINANCIAL INSTITUTION

2019 ◽  
Vol 1 (1) ◽  
pp. 13-24
Author(s):  
Mariawati Omar
Keyword(s):  
Literature Review ◽  
Financial Institutions ◽  
Financial Institution ◽  
Governance Structure ◽  
Financial Statement ◽  
Audit Review ◽  
Auditing Standards ◽  
Islamic Financial Institutions

The study examines the stakeholders’ perspectives who are involved directly and/or indirectly with Shariah compliance auditing of Islamic financial institutions on the issues of Shariah auditing standards, auditors’ qualifications, and independence. Auditing Islamic financial institutions cover a broader scope than the financial statement auditing. The auditors are not only conducting financial audits but also conduct tests on the Shariah compliance according to Shariah resolution and guidelines set by the centralized Shariah Board and/ or the industry Shariah Body. The Shariah audit review is unique due to the requirement in ensuring that all business activities and operations adhere to Shariah principles. The limited resourceful auditors that possess both Shariah and technical accounting/auditing qualifications and the issue of independence may affect the reputable image of Islamic financial institutions. This study is based on a literature review from past studies. Evidence from past studies mostly emphasizes the importance of auditors' qualifications and independence in determining the Islamic financial market’s growth. The paper suggests practical actions to regulators in formulating regulated professional governance structure for Shariah auditors.

The harmonization of audit reports of Islamic banks

2017 ◽  
Vol 8 (2) ◽  
pp. 203-228 ◽  
Author(s):  
Mondher Fakhfakh
Keyword(s):  
Empirical Evidence ◽  
Financial Institutions ◽  
Design Methodology ◽  
International Federation ◽  
Islamic Banks ◽  
Content Type ◽  
Auditing Standards ◽  
Islamic Financial Institutions ◽  
Independent Auditors ◽  
Audit Reports

Purpose The purpose of this paper is to examine the level of harmonization of auditors’ reports issued by independent auditors of Islamic banks. Design/methodology/approach The homogenization of the auditors’ reports of Islamic banks has been statistically measured. Supranational auditing standards on auditors’ reports (ISA 700 and AAOIFI standard) are used as the control. Findings The results show lack of harmonization in several elements related to the form of the auditor’s report and in all elements related to the content of the auditor’s report among the Islamic banks. Originality/value This paper provides new empirical evidence about the measurement of harmonization in the form and content of the auditors’ reports of Islamic banks. It discusses the level of compliance with the elements enumerated by the standards issued by the International Federation of Accountants and the Accounting and Auditing Organization for Islamic Financial Institutions.

scholarly journals Comparison and Analysis on Shariah Standards of AAOIFI & BNM For Mudarbah Product

2020 ◽  
Vol 5 (2) ◽  
pp. 48-60
Author(s):  
Mustanir Hussain Wasim ◽  
◽  
Hassnian Ali ◽  
Keyword(s):  
Financial Institutions ◽  
Qualitative Method ◽  
Financial System ◽  
Standard Setting ◽  
Financial Industry ◽  
International Standard ◽  
Auditing Standards ◽  
Islamic Financial Institutions ◽  
Comparison And Analysis

Comparison and Analysis on Shariah Standards of AAOIFI & BNM For Mudarbah Product There are two main international standard setting bodies which provide shariah, accounting and auditing standards for global Islamic financial industry. These two institutions are the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Bank Negara Malaysia (BNM). The objective of the current study is to provide an analysis of Mudarbah financing by comparing the standards of the AAOIFI and BNM. Qualitative method of research is used to analyze the content from archival sources. It is established that there are a lot of clauses between the two standards which need to be highlighted for the development of a comprehensive and uniform Islamic financial system. This study will help to achieve this goal by minimizing the gap between AAOIFI and BNM. Keywords: Mudarbah financing, AAOIFI, BNM, Shariah Standards

The Islamic harmonization of consolidated auditors’ reports

2020 ◽  
Vol 11 (3) ◽  
pp. 647-673 ◽  
Author(s):  
Mondher Fakhfakh
Keyword(s):  
Empirical Evidence ◽  
Financial Institutions ◽  
Design Methodology ◽  
International Federation ◽  
Islamic Banks ◽  
Content Type ◽  
Statistical Measurement ◽  
Auditing Standards ◽  
Islamic Financial Institutions ◽  
Independent Auditors

Purpose The purpose of this paper is to examine the level of harmonization of consolidated auditors’ reports issued by the independent auditors of Islamic banks. Design/methodology/approach A statistical measurement of the homogenization of the consolidated auditors’ reports of Islamic banks. International and Islamic auditing standards on consolidated auditors’ reports are used as the control (ISA 700 and AAOIFI standard-IAS2). Findings The results show a lack of harmonization among the Islamic bank’s groups in several elements related to the form of the consolidated auditor’s report and in all elements related to the independent auditor’s report. Originality/value This paper provides new empirical evidence about the measurement of harmonization in the form and content of the consolidated auditors’ reports of Islamic banks groups. It discusses the level of compliance with the consolidated elements enumerated by the standards issued by the International Federation of Accountants and the Accounting and Auditing Organization for Islamic Financial Institutions.

Shari’ah Audit Disclosure in annual reports: A comparison study between Bahrain and Malaysian Islamic Financial Institutions

2016 ◽  
Vol 4 (2) ◽  
pp. 202-218
Author(s):  
ڕێبوار محمد احمد ◽  
◽  
هێمن محمد عزیز ◽  
بصيرة ماجيد نجم ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Annual Reports ◽  
Comparison Study ◽  
Islamic Financial Institutions

Analisis Kontrak Ijarah

2018 ◽  
Vol 4 (2) ◽  
pp. 201-213
Author(s):  
Puji Kurniawan
Keyword(s):  
Financial Institutions ◽  
Profit Sharing ◽  
Fundamental Difference ◽  
Human Needs ◽  
The People ◽  
Islamic Financial Institutions

Humans are social creatures who need each other to socialize or to fulfill their needs, such as primary, secondary and tertiary needs. In this life there are 2 (two) groups of people, namely groups of people who are overfunded and those who are underfunded. Therefore, banks and non-bank financial institutions have emerged as intermediaries between the 2 (two) groups of the people so that the balance can occur in meeting the needs of each life. In Indonesia, there are many conventional and sharia bank and non-bank financial institutions that provide financing services to meet human needs. The fundamental difference between conventional and Islamic financial institutions is the use of the interest system which is usury in conventional financial institutions and the use of profit sharing systems in Islamic financial institutions.

BANK CONTROL IN THE SYSTEM OF ISLAMIC FINANCIAL INSTITUTIONS: USE IN RUSSIA

2020 ◽  
Vol 1 (1) ◽  
pp. 268-273
Author(s):  
Аль-Гаррави Мохаммед Абдулвахид Джайяс ◽  
Keyword(s):  
Financial Institutions ◽  
Islamic Financial Institutions
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