Relationship between internal Shariah audit characteristics and its effectiveness

Khalid, Azam Abdelhakeem; Hasnah, Hasnah; Masron, Tajul Ariffin

doi:10.1108/h-11-2016-0084

Cited by 32 publications

(50 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Other studies define the effectiveness of internal Sharīʿah audit as the internal Sharīʿah auditors' capability of achieving IFIs' objectives, which can be obtained by improving their performance (Khalid et al, 2017).…”

Section: Internal Sharīʿah Audit Effectivenessmentioning

confidence: 99%

“…To achieve internal Sharīʿah audit effectiveness, management's role does not stop at providing the required resources and human capital only. There is also need for management's commitment to implement the recommendations provided in the audit report to confirm the compatibility with Sharīʿah in all of the bank's activities (Khalid et al, 2017) Hence, it is anticipated that management support is an important factor in assuring the effectiveness of internal Sharīʿah audit in IBs.…”

Section: Internal Sharīʿah Audit Effectivenessmentioning

confidence: 99%

See 1 more Smart Citation

Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks

Algabry

Alhabshi

Soualhi

et al. 2020

IJIF

View full text Add to dashboard Cite

Purpose Sharīʿah audit is an important area to examine because it is considered the backbone of the Islamic finance industry. The purpose of this study is to spot and highlight the determinants that have an effect on internal Sharīʿah audit effectiveness in the Islamic banking industry. It attempts to develop a conceptual framework for those factors. Design/methodology/approach The paper reviews the existing literature to figure out the factors that frame the effectiveness of internal Sharīʿah audit in Islamic banks (IBs) and to propose a conceptual framework containing these factors. Findings This research proposes a conceptual framework of factors that impact on Sharīʿah audit effectiveness in IBs based on a comprehensive literature review. The proposed framework includes external and internal factors, as well as internal Sharīʿah audit structure, process and requirements that can be used to figure out the most significant factors of Sharīʿah audit effectiveness. Practical implications First, the regulators need to provide a detailed framework for the Sharīʿah audit, which covers the main requirements for effective Sharīʿah governance. Second, Islamic financial institutions need to pay more attention to following the Sharīʿah audit process to achieve the objective of effective Sharīʿah governance. Finally, the dearth of empirical research on the role and effectiveness of Sharīʿah audit in Islamic banking highlights the need to develop an appropriate methodology to enhance the study of the effectiveness of Sharīʿah governance practices. Originality/value The Sharīʿah ensures compliance with its rules and regulations and enhances the soundness and credibility of the Islamic finance industry. This study identifies a number of issues that require further investigation to establish a better system of Sharīʿah audit and to identify the factors that affect Sharīʿah auditing practices. Therefore, this paper is unique in covering the main elements that have an influence on the effectiveness of the Sharīʿah audit and proposes them in one framework.

show abstract

Section: Internal Sharīʿah Audit Effectivenessmentioning

confidence: 99%

Section: Internal Sharīʿah Audit Effectivenessmentioning

confidence: 99%

Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks

Algabry

Alhabshi

Soualhi

et al. 2020

IJIF

View full text Add to dashboard Cite

show abstract

“…Furthermore, little research has examined the characteristics of IA in sharia financial institutions, although Khalid et al, (2017) tested the characteristics and performance of IA in Islamic financial institutions in Bahrain. Previous research related to CF has included a study by Violita & Handarbeni (2017), which pointed out the sharia compliance monitoring procedures in Islamic banks, and described the relationship between SSB and CF and IA in implementing sharia compliance monitoring.…”

Section: Consideringmentioning

confidence: 99%

“…Previous research has identified how to measure the effectiveness of the IA's and CF's roles (Alzeban, 2018;Khalid et al, 2017;Alzeban & Gwilliam, 2014) as organs of governance. Some characteristics which are commonly utilized include competence, work programs, and the number of members.…”

Section: Corporate Governance Mechanisms In Islamic Banking In Indonesiamentioning

confidence: 99%

“…However, the practice of delegating sharia supervision to IA and CF staff suggests that the SSB is very dependent on both functions to implement sharia supervision (Haridan et al, 2018). This phenomenon requires Islamic banks to improve the characteristics of their IA and CF teams in an effort to ensure the purpose of Islamic banks, which is to convey the legality of the halal products and services offered by Islamic banks (Khalid, Haron, & Masron, 2017).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Do the Characteristics of Internal Audits and Compliance Functions Affect Sharia Compliance?

Puspitasari

Handayani

2020

J. Indones.Econ.Bus.

View full text Add to dashboard Cite

Introduction: This study aims to explore the relationship between the characteristics of an internal audit (IA) and a compliance function (CF) toward sharia compliance. Background Problems: The Sharia Supervisory Board (SSB), which is supposed to guarantee sharia compliance in Islamic banking, does not function properly. Consequently, the SSB delegates this supervision to the banks’ employees, so the compliance function and internal audit become common practices used to address any issues. Novelty: The majority of previous studies have examined the role/characteristics of the SSB in sharia compliance. On the other hand, few studies have examined the role/characteristics of IA and CF in sharia compliance. Therefore, this study was conducted to examine the characteristics of IA and CF toward sharia compliance. Research Method: The study utilized the seven Islamic banks in Indonesia which published their annual reports for the period from 2011 to 2018 as its research sample. The analysis technique used in this study is a multiple regression analysis. Results: The results indicated that IA and CF competencies had a positive effect toward the sharia compliance of Islamic banks in Indonesia. Conclusion: It is necessary to enhance the competencies of IA and CF staff through improving their professional qualifications, such as through education programs, certification and relevant training on the scope of sharia supervision. Such actions need to be done to support IA and CF staff in performing the comprehensive supervision of sharia compliance.

show abstract

The Performance of Internal Shariah Auditor in Islamic Financial Institutions

Khalid,

Sarea,

Bilal

2024

Studies in Systems, Decision and Control

View full text Add to dashboard Cite

Relationship between internal Shariah audit characteristics and its effectiveness

Cited by 32 publications

References 18 publications

Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks

Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks

Do the Characteristics of Internal Audits and Compliance Functions Affect Sharia Compliance?

The Performance of Internal Shariah Auditor in Islamic Financial Institutions

Contact Info

Product

Resources

About