Audit Syariah

Tiffy Tiffeny Edmund 62288211087 inspect 1 canvas Syariah Definition Audit is a process to investigate and verify an account, while Syariah is the rule of Islam (Hukum Islam). Therefore, Audit Syariah is the process to analyse, check, investigate and to make sure the operation and the management of Moslem Financial Institution (IFI) is accordance to the principal and the Syariahs guidelines, mainly for the performance of a product.Syarikah al-Rajhi al-Masrafiyyah LiL Istismar has define the Audit Syariah as parties to determine the extent of Syariah gentle IFI based on decision made by the Syariah Advisory Council ( sacking) Objectives * Is in that location any specific mechanism to ensure the implement decision of SAC based on the Muamalat Islam? * How the implement of contracts, requirements, and operation being monitored by the IFI? The wideness of Syariah compliance is to mitigate the operative try of IFI and to strengthen the internal accommodate of Islamic Banking sy stem.Operation risks arise out because of failure in internal controls relating to processed, people, systems, or external event. The syariah non-compliance significant with this risk, which may result in voiding of contracts, divergence of income, withdrawals, diminishes reputation and reduction in business. So, learn challenge in managing operable risk in Islamic banking is by ensuring syariah compliance. Therefore, it is important to have syariah meeter to control activities according the Islamic rules which permissible and compliance with the principles of syariah About audited account syariahThe different between statutorily IFI of different countries against actual chain and ordered series of what constitutes syariah audit might be bias towards the actual nature and kitchen range of syariah audit. listener that practices the syariah system should be understood as a specimen that those countries adopt probably due to certain constraint within their pecuniary system or infrastructure. Primary scope of syariah audit is the audit of m geniustary rehearsal of the IFI.The audit will design to fall over the financial statement ar drawn up according to the prevailing financial describe disclosure standard of the country and wether the financial entries truly and accurately reflects the right wing and obligation arising from the various syariah contracts that the IFI enters into. If the requirement of IFIs in that country is to adopt the accountancy and Auditing Organization of Islamic Financial Institution (AAOIFI) standards then adherence to AAOIFI standards would be construed as the syariah yielding yardstick.The next area of a scope is the operational aspects of the IFI. This largely depends on the type of business the IFI is involved in and the light upon business activities undertaken by the IFI. This will involve an examination of the policies and procedures of the IFI on the key business activities, product manual(a)s, operational proce ss, contracts and agreements of products, memorandum and articles of association of the organization and manifestation of reports issued by the management or syariah supervisor board and internal review unit.Third scope is the organizational structure and the people involved in put to death key activities of each business area of the IFI. Audit on this scope will ensure that the organization structure is feasible to undertake the syariah compliant business activities and those they are qualified personnel in the area of ? fiqh al-muamalat to reserve the operations of the IFI. Islamic commercial jurisprudence or the rules of transacting in Islamic lawFinally, the scope should also cover the IT employment systems that are in hind end to support the key business activities of the IFI. An audit into this area would look into whether the functionalities and features of the application system are sufficient and adequate to support an Islamic Banking air by the IFI. Few things should be emphasized by auditor is revokeing both sinful activities such as the elements of riba, channeling received funds in a sinful way, and transactions that pay interest to depositor or investment in interest bearing stocks.The Syariah Advisory Council of Malaysia security commission (SAC) had resolved that riba is one of the main criteria causing the security of listed company to be excluded from SAC sanctioned list. Islamic Instrument Study Group (IISG) at its fifth come across on 23th August 1995 resolves that securities of a company whose operations and main activities are based on riba are not halal. Second thing is risk sharing. Islamic finance requires each party to a transaction to trade the risks and rewards in an equitable manner.Islamic finance also doesnt allow and anticipate exploitation regarding right, liability and organization of the transaction leaving no elbow room for ambiguities. Islamic law in finance is quite flexible where it allows the projection of a ny form of contractual relationship as long they avoid the clearly stated the prohibitions in the quran and sunah. To ensure the audit boost runs smoothly, auditor must understand every decision maked by SAC. Auditor can ask the secretariat for help or by referring the manual of syariah, syariah checklist, syariah audit report from previous year, and so on.