Factors affecting Sharīʿah audit quality in Islamic banking institutions of Pakistan: a theoretical framework
Purpose The objective of this study is to present a theoretical framework, which helps ascertain the meanings of the Sharīʿah audit quality and identify the factors that affect it. Design/methodology/approach The current literature of conventional and Islamic finance on audit quality is critically r...
| Authors: | ; |
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| Format: | Electronic Article |
| Language: | English |
| Check availability: | HBZ Gateway |
| Journals Online & Print: | Drawer...
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| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Published: |
Emerald Publishing Service
2021
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| In: |
Islamic economic studies
Year: 2021, Volume: 28, Issue: 2, Pages: 124-140 |
| Further subjects: | B
Sharīʿah compliance
B Aufsatz in Zeitschrift B Sharīʿah governance B Islamic Banking B Sharīʿah audit quality B Sharīʿah risk |
| Online Access: |
Volltext (kostenfrei) Volltext (kostenfrei) |
| Summary: | Purpose The objective of this study is to present a theoretical framework, which helps ascertain the meanings of the Sharīʿah audit quality and identify the factors that affect it. Design/methodology/approach The current literature of conventional and Islamic finance on audit quality is critically reviewed to propose the theoretical framework for the quality of Sharīʿah audit. Findings The paper suggests that for a better Sharīʿah compliance at Islamic banking institutions (IBIs), the role of audit practitioners is very much indispensable. The competency of the practitioner is one of the important factors that affect the quality of the Sharīʿah audit. Assessment and identification of Sharīʿah risk in different financial arrangements, contracts and transactions require a unique competency on the part of the auditor, that is, gripping Sharīʿah law besides traditional assurance skills and techniques. Practical implications The Sharīʿah compliance is one of the primary objectives of IBIs, which works at the conceptual level, product development and implementation level, various business models and governance level. Sharīʿah audit function, internal or external, is an important component of Sharīʿah governance framework and provides an independent assessment of IBIs' compliance with the Sharīʿah rules and principles and helps in managing the Sharīʿah non-compliance risk and ensuring sound internal Sharīʿah control system. Originality/value The paper proposes a theoretical framework for defining the Sharīʿah audit quality and determining the factors that are significant in affecting the Sharīʿah audit quality in the IBIs of Pakistan. |
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| ISSN: | 2411-3395 |
| Contains: | Enthalten in: Islamic economic studies
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| Persistent identifiers: | DOI: 10.1108/IES-07-2020-0025 |