Audit Syariah

Tiffy Tiffeny Edmund 62288211087 Audit 1 Audit Syariah Definition Audit is a process to investigate and verify an account, while Syariah is the rule of Islam (Hukum Islam). Therefore, Audit Syariah is the process to analyse, check, investigate and to make sure the operation and the management of Islamic Financial Institution (IFI) is accordance to the principal and the Syariah’s guidelines, mainly for the production of a product.

Syarikah al-Rajhi al-Masrafiyyah LiL Istismar has define the Audit Syariah as “parties to determine the extent of Syariah compliant IFI based on decision made by the Syariah Advisory Council (SAC)” Objectives * Is there any specific mechanism to ensure the implement decision of SAC based on the Muamalat Islam? * How the implement of contracts, requirements, and operation being monitored by the IFI? The importance of Syariah compliance is to mitigate the operational risk of IFI and to strengthen the internal control of Islamic Banking system.

Operation risks arise out because of failure in internal controls relating to processed, people, systems, or external event. The syariah non-compliance significant with this risk, which may result in voiding of contracts, loss of income, withdrawals, diminishes reputation and reduction in business. So, key challenge in managing operational risk in Islamic banking is by ensuring syariah compliance. Therefore, it is important to have syariah auditor to control activities according the Islamic rules which permissible and compliance with the principles of syariah About audit syariah

The different between statutorily IFI of different countries against actual scope and scale of what constitutes syariah audit might be bias towards the actual nature and scope of syariah audit. Auditor that practices the syariah system should be understood as a model that those countries adopt probably due to certain constraint within their financial system or infrastructure. Primary scope of syariah audit is the audit of financial statement of the IFI.

The audit will design to review the financial statement are drawn up according to the prevailing financial reporting disclosure standard of the country and wether the financial entries truly and accurately reflects the right and obligation arising from the various syariah contracts that the IFI enters into. If the requirement of IFIs in that country is to adopt the Accounting and Auditing Organization of Islamic Financial Institution (AAOIFI) standards then adherence to AAOIFI standards would be construed as the syariah compliant yardstick.

The next area of a scope is the operational aspects of the IFI. This largely depends on the type of business the IFI is involved in and the key business activities undertaken by the IFI. This will involve an examination of the policies and procedures of the IFI on the key business activities, product manuals, operational process, contracts and agreements of products, memorandum and articles of association of the organization and observation of reports issued by the management or syariah supervisor board and internal review unit.

Third scope is the organizational structure and the people involved in executing key activities of each business area of the IFI. Audit on this scope will ensure that the organization structure is feasible to undertake the syariah compliant business activities and those they are qualified personnel in the area of ? fiqh al-muamalat to support the operations of the IFI. Islamic commercial jurisprudence or the rules of transacting in Islamic law

Finally, the scope should also cover the IT application systems that are in place to support the key business activities of the IFI. An audit into this area would look into whether the functionalities and features of the application system are sufficient and adequate to support an Islamic Banking Business by the IFI. Few things should be emphasized by auditor is avoiding every sinful activities such as the elements of riba, channeling received funds in a sinful way, and transactions that pay interest to depositor or investment in interest bearing stocks.

The Syariah Advisory Council of Malaysia security commission (SAC) had resolved that riba is one of the main criteria causing the security of listed company to be excluded from SAC approved list. Islamic Instrument Study Group (IISG) at its fifth meeting on 23th August 1995 resolves that securities of a company whose operations and main activities are based on riba are not halal. Second thing is risk sharing. Islamic finance requires each party to a transaction to share the risks and rewards in an equitable manner.

Islamic finance also doesn’t allow and forbid exploitation regarding right, liability and organization of the transaction leaving no room for ambiguities. Islamic law in finance is quite flexible where it allows the undertaking of any form of contractual relationship as long they avoid the clearly stated the prohibitions in the quran and sunah. To ensure the audit progress runs smoothly, auditor must understand every decision maked by SAC. Auditor can ask the secretariat for help or by referring the manual of syariah, syariah checklist, syariah audit report from previous year, and so on.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
excellent, got a 100
Customer 452773, May 17th, 2023
History
Looks great and appreciate the help.
Customer 452675, April 26th, 2021
ACC/543: Managerial Accounting & Legal Aspects Of Business
EXCELLENT JOB
Customer 452773, January 10th, 2024
ACC543MANAGERIALACCOUNTINGANDLEGALASPECTS
excellent
Customer 452773, January 25th, 2024
Human Resources Management (HRM)
excellent work
Customer 452773, July 3rd, 2023
Business and administrative studies
excellent job!
Customer 452773, May 25th, 2023
Business and administrative studies
Thanks
Customer 452773, March 3rd, 2023
Business and administrative studies
Thank you
Customer 452773, March 19th, 2023
Humanities
Thank youuuu
Customer 452729, May 30th, 2021
Psychology
Thank you!
Customer 452545, February 6th, 2021
History
Don't really see any of sources I provided, but elsewise its great, thank you!
Customer 452697, May 8th, 2021
Philosophy
Thank you
Customer 452811, February 17th, 2024
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp