Audit Syariah

Tiffy Tiffeny Edmund 62288211087 canvased account 1 Audit Syariah exposition Audit is a process to analyze 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 undisputable the operation and the concern of Moslem fiscal Institution (IFI) is accordance to the principal and the Syariahs guidelines, mainly for the production of a product.Syarikah al-Rajhi al-Masrafiyyah LiL Istismar has position the Audit Syariah as parties to determine the point of Syariah tame IFI found on close made by the Syariah Advisory Council (SAC) Objectives * Is there any specific mechanism to plug the implement conclusiveness of SAC based on the Muamalat Islam? * How the implement of contracts, requirements, and operation beingness monitored by the IFI? The importance of Syariah compliance is to rationalise the operational risk of IFI and to streng indeed the interior control of Moslem Bank ing establishment.Operation risks arise pop because of failure in inside controls relating to processed, people, systems, or external event. The syariah non-compliance significant with this risk, which may resolvent in voiding of contracts, loss of income, withdrawals, diminishes nature and reduction in line of descent. So, severalize take exception in managing operational risk in Muslim banking is by ensuring syariah compliance. Therefore, it is important to take away syariah studyor to control activities according the Islamic rules which permissible and compliance with the principles of syariah About audit syariahThe various between statutorily IFI of different countries against literal grasp and scale of what constitutes syariah audit might be bias towards the actual nature and background knowledge of syariah audit. Auditor that practices the syariah system should be understood as a model that those countries adopt probably cod to certain constraint within their p ecuniary system or infra social organization. Primary scope of syariah audit is the audit of financial controversy of the IFI.The audit depart design to go over the financial statement ar pinched up according to the prevailing financial reporting disclosure standard of the orbit and wether the financial entries truly and accurately reflects the rectify 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 Accounting and Auditing organic fair play of Islamic Financial Institution (AAOIFI) standards then adherence to AAOIFI standards would be construed as the syariah compliant yardstick.The next electron orbit of a scope is the operational aspects of the IFI. This largely depends on the reference of business the IFI is taked in and the key business activities undertaken by the IFI. This will involve an examination of the policies and procedures of the IFI on the key business activitie s, product manuals, operational process, contracts and agreements of products, memorandum and articles of standoff of the organization and observation 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 penalise key activities of separately business country of the IFI. Audit on this scope will ensure that the organization structure is operable to undertake the syariah compliant business activities and those they ar qualified personnel in the cranial orbit of ? fiqh al-muamalat to bet on the trading operations of the IFI. Islamic commercialised jurisprudence or the rules of transacting in Islamic lawFinally, the scope should withal cover the IT performance systems that are in place 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 t o support an Islamic Banking Business by the IFI. Few issues should be emphasized by attender is rid ofing both unhallowed activities such as the elements of riba, channeling authentic funds in a sinful way, and transactions that pay interest to depositor or investment in interest presence stocks.The Syariah Advisory Council of Malaysia security commission (SAC) had immovable that riba is one of the main criteria causing the security of listed company to be excluded from SAC canonic list. Islamic Instrument Study chemical group (IISG) at its fifth meeting 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 contribution the risks and rewards in an equitable manner.Islamic finance also doesnt allow and forbid victimisation regarding right, liability and organization of the transaction leaving no room for ambigui ties. Islamic law in finance is quite elastic where it allows the undertaking of any form of contractual relationship as long they avoid the clearly stated the prohibitions in the al-Quran and sunah. To ensure the audit progress runs smoothly, auditor must understand every decision maked by SAC. Auditor can enquire the secretariat for help or by referring the manual of syariah, syariah checklist, syariah audit report from front year, and so on.