Review Of Literature On Shariah Governance And Audit In Islamic Banks
Keywords:
Framework, Shariah, Governance, SSB, AuditAbstract
This study review delves into the critical realm of Shariah governance and auditing within Islamic banks. It examines the pivotal role played by Shariah governance, chiefly orchestrated through the Shariah Supervisory Board (SSB), in overseeing and regulating the operations of Islamic banks, ensuring their transparency, credibility, and strict adherence to Shariah principles. Deviating from established Shariah governance processes can lead to a lapse in Shariah compliance, raising concerns about the activities of Islamic banks. Furthermore, the review addresses a longstanding concern that has persisted for over three decades, revolving around Shariah auditing in the evolving Islamic financial industry. It acknowledges that obtaining comprehensive insights into the current state of Shariah audit research has proven to be a challenging endeavor. Consequently, the review underscores the imperative need to evaluate the landscape of Shariah audit research. The primary objective of this literature review is to employ an inductive approach, effectively examining and portraying the current state of Shariah auditing practices. Additionally, it highlights the intention to analyse past literature comprehensively, focusing on evaluating Shariah governance and the auditing process within Islamic banks. The findings from the reviewed studies underscore the significant and multifaceted impact of Shariah auditing and governance on the overall performance of Islamic banks, further emphasising the importance of strengthening regulatory frameworks and professional standards in this domain. The reviewed research also suggests promising areas for future inquiry and policymaking to enhance the effectiveness and credibility of Shariah compliance within Islamic financial institutions.
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