SHARIAH AUDIT IN ISLAMIC FINANCE13 November 2019 Azahari
One of the most important governance mechanisms of an Islamic Financial Institution (IFI) to ensure compliance with Shariah is the Shariah Supervisory Board (SSB). This study will try to expand the vital of SSB to the setting up of an IFI. The roles and responsibilities of the SSB will be discussed in details along with the process of how an SSB reviews the performance of a given IFI. Further, it will discuss how the Shariah reviews are undertaken in IFIs. The findings resulted from the study on the above will assess the effectiveness of the Shariah reviews on IFIs. This study will analyze whether the current practiced of Shariah reviews are sufficient to justify the Shariah audit report.