Purpose This paper aims to examine the characteristics influencing internal Shariah audit effectiveness in Islamic financial institutions (IFIs) in Bahrain. Design/methodology/approach Data were collected from 76 internal Shariah auditors, 23 Shariah supervisory board and 16 audit and governance committee from 52 IFIs in Bahrain. The data were analyzed using structural equation method via SmartPLS 2.0 to examine the relationship between characteristics and effectiveness of internal Shariah audit. Findings It was found that competency and work performance were positively significant with internal Shariah audit effectiveness. The findings revealed that the main competency of internal Shariah audit to influence effectiveness were to have professional certification and skills, while work performance to influence effectiveness were engagement planning, performing the engagement and communicating results with management and having sufficient information to provide sound opinion formed by Shariah audit. Originality/value From the research perspective, this is the first study that examines the relationship between internal Shariah audit characteristics and its effectiveness in Bahraini IFIs.

Purpose This paper aims to examine bases of effectiveness in internal Shariah auditing undertaken in Islamic financial institutions (IFIs). Design/methodology/approach This paper is theoretical in approach taking, as its starting-point, an extensive literature review. From a general agency theory, an Islamic agency theory is articulated and then applied to ascertain attributes of internal Shariah audit effectiveness revolving around the concept of independence. Findings Effective internal Shariah auditing, as a mechanism of assuring Shariah compliance by IFIs, varies directly with the degree of independence enjoyed by internal Shariah auditors themselves. The research propounds that an articulated Islamic agency theory holds potential to serve as a theoretical foundation to build a multi-dimensional conceptual framework based on independence utile for evaluating internal Shariah audit effectiveness. Research limitations/implications Evidence is drawn strictly from secondary sources. Practical implications To assure effectiveness of internal Shariah auditing, IFIs ought to increase the level of independence of internal Shariah auditors. Originality/value Internal Shariah audit effectiveness in IFIs has not been extensively studied in comparison with both studies of external Shariah audit effectiveness in IFIs and internal audit effectiveness undertaken by conventional financial institutions. This research fills that gap.

Purpose The purpose of this paper is to propose the conceptual relationship between competency and effectiveness of internal Shariah auditors in Islamic financial institutions (IFIs). Design/methodology/approach Normative and theorizing based on the main sources of Islam, mainly Maqasid al-Shariah theory, has been utilized in this research. Findings This study demonstrated how Maqasid al-Shariah or higher objectives of Islamic law have gradually captured the attention of increasing numbers of modern Muslim scholars for solving contemporary issues. Originality/value This study uniquely captured Maqasid al-Shariah for the competency of internal Shariah auditor.

Purpose of the study: It is the goal of this study to explore selected Malaysian public universities undergraduates’ awareness and knowledge level of internal Shariah audit. Methodology: The research used the quantitative approach of the survey. A survey was administrated to undergraduate students in accounting and finance programs in selected Malaysian public universities. Main Findings: The results of this research may indicate the level of knowledge and awareness among accounting students in selected Malaysian public universities. The outcomes of this research could serve as a reference point for the public universities, regulatory and professional bodies in evaluating the execution of a complete internal Shariah audit’s framework. This research will help to enhance the accounting courses offered by selected Malaysian public universities. Applications of this study: This research may provide the accounting students and professional accountants the understanding of the importance of internal Shariah auditing in Malaysian IFIs. Novelty/Originality of this study: Awareness of Internal Shariah Auditing in public universities in Malaysia has not been extensively studied.

PurposeThe purpose of this study is to explore the role of Audit and Governance Committee (AGC) for internal Shariah auditing's effectiveness in Bahrain's Islamic banks.Design/methodology/approachThis paper employed two-stage approach, i.e. collecting and analysis of data. In this paper, the interviews and literature review on AGC and internal Shariah auditor were conducted as these respondents are considered vital to Islamic banks.FindingsThis paper posited that in building internal Shariah audit effectiveness' conceptual framework, the Islamic worldview theory may be employed as the theoretical foundation. Based on the theory, it was suggested that the Islamic bank's auditors and governance committees may enhance the internal Shariah auditors' effectiveness.Practical implicationsIn view of the roles of AGC on internal Shariah audit effectiveness, the current exploratory research contribute to enhance the limited knowledge about AGC by describing the practices of Bahraini Islamic banks in terms of composition, roles/duties and responsibilities and operations. This study also adds to the body literature of AGC effectiveness by identifying roles, duties and responsibilities of characterizing more active AGC and suggesting that these AGC could have a positive impact on internal Shariah audit effectiveness in Bahraini Islamic banks. Overall, this paper provides important insights for Board of Director's member can refer to AGC roles, duties and responsibilities to conduct a self-diagnosis of current practice.Originality/valueThis paper uniquely seized Islamic world view for Islamic banks' AGC.