It is the duty and responsibility of an IFI to establish a sound and robust Shariah governance framework

with emphasis placed on the roles of key functionalities

Based on exhibit below, it is clear that the responsibilities and accountablilities to ensure full shariah
compliance process is no longer confined to Shariah Committee or advisors . Rather , the framework
clearly outlines the roles and responsibilities of each organ of governance .

Shariah Audit best defined as a process of accumulating and evaluating evidence ( Rahman, 2008 ) that is
related to the overall activities and operations [ process, personnel, financial and non financial
performance, financial positions, systems, marketing and etc. ( Hameed, 2009 ) ] of the IFIs in which the
information gathered must be adherence to the Shariah principles. Shariah audit in the IFIs shall be
performed by independent auditors who are also competent in addressing Shariah matters.

This means from Shariah perspectives, not only should the financial statements that need to be audited,
but the whole institutions including the objectives, processes, marketing, personnel, financial and non-
financial performance are also subject to audit.

COMPARISON BETWEEN SHARIAH AUDIT AND CONVENTIONAL AUDIT

SHARIAH AUDIT CONVENTIONAL AUDIT

Definition