http://www.loc.gov/mods/v3 http://www.loc.gov/standards/mods/v3/mods-3-2.xsd
Dynamics of Shariah auditing in Islamic Institutions
a study of the Malaysian Islamic financial sector
International Islamic University Malaysia
Kuliyyah of Economics and Management Sciences, International Islamic University Malaysia
This study argues that shariah auditing has a key importance as there is a growing awareness among Islamic institutions that every such institution should contribute towards achieving the objectives of the Islamic law {Maq'asid Asy-Shariah). The primary objective of this research is to examine the theoretical and practical aspects of shariah auditing in IFIs in Malaysia with the ultimate aim of identifying whether there is a gap between the theoretical and actual practice. The focus of the study revolves around four aspects of issues, i.e. the framework, the scope, the qualification and the independence, hi the course of achieving the objective, this study surveys different groups of respondents who are involved with shariah compliance/auditing in the IFIs using questionnaires and interviews. It is suggested that there is a need to have regular independent shariah audits in IFIs as people are now experiencing a movement along a continuum from a society that trusts everything and audits nothing to a society that trusts nothing and audits everything. The concept of shariah auditing should be extended to the activities relating to among others, the system, the products, the employees, the environment and the society. There is a need to develop a useful shariah audit framework to ensure effectiveness of the goals of shariah compliance in IFIs which in turn can contribute positively to the ummah (society) at large. Persistently high expectations from the operations of IFIs appear to give way for a gap to exist between "what ought to be" shariah auditing and the current practice of shariah audit in IFIs in Malaysia. Sulaiman (2005) mentioned that "what ought to be desired (the desirable)" may not coincide with "what is actually desired (the desired)" and in consequent "what is actually desired" may not be the same as "the actual" practice. In view of that, this study also explores empirically the gap between "the desirable" and "the actual" practice of shariah auditing in IFIs in Malaysia. It is found that there exists a gap between the two concepts in terms of the four issues discussed in this study. Even though this study cannot hope to bridge the gap that exists, it nevertheless shows that shariah audit function has not seriously taken an impact in IFIs in Malaysia despite its potential as a monitoring tool for shariah compliance.
"A dissertation submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Accounting"--On t.p.
Thesis (Ph.D) -- International Islamic University Malaysia, 2009.
Includes bibliographical references (leaves 268-278).