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CURRENT ISSUES IN AUDITING (SHARIAH AUDIT) - Coggle Diagram
CURRENT ISSUES IN AUDITING
(SHARIAH AUDIT)
Type of Audit
Conventional Audit
ensure assertions about economic actions
to ensure events comply with relevant standards
Audit from Islamic perspective
to ensure compliance with Shariah rules and principles
Importance of Shariah Audit
To assess the degree of non-compliance and its effect
on the report
recommend corrective actions, improvement and rectifications necessary
To detect non-compliance
Levels of Shariah Audit
Compliance audit of organizational structure, people and processess
Review of adequacy Shariah governance process, provide recommendations to the Audit Committee and Shariah Compliance
Audit of Financial Statements
Definition of Shariah Audit
Periodic assessment conducted from time to time, to provide an independent assessment and objective assurance designed to add value and improve the degree of compliance in relation to the business operations of Islamic Financial Institutions (IFI’s) business operations, with the main objective of ensuring a sound and effective internal control system for Shariahcompliance.
Question about Shariah Audit
Goals of Shariah Audit to ensure sound and effective controls systems for Shariah compliance
external auditor reluctant to ensure Shariah Compliance due to lack of expertise
internal auditors who have
adequate Shariah-related knowledge, skills and training performed Shariah Audit
Benefits of Shariah compliance
distinguishes Islamic financial system from conventional financial system
ensure acceptance, validity and enforceability
Having Islamic Financial perspectives
Gain public confidence