Determinants of effective Shariah compliance auditing in Palestine: a theoretical and conceptual analysis
| Date | 20 October 2023 |
| Pages | 845-857 |
| DOI | https://doi.org/10.1108/JMLC-08-2023-0132 |
| Published date | 20 October 2023 |
| Author | Mustafa Faza',Nemer Badwan,Montaser Hamdan |
Determinants of effective Shariah
compliance auditing in Palestine: a
theoretical and conceptual analysis
Mustafa Faza’
Higher Institute of Accountancy and Enterprise Management,
University of Manouba, Manouba, Tunisia
Nemer Badwan
Palestine Economic Policy Research Institute –MAS, Ramallah,
State of Palestine, and
Montaser Hamdan
Faculty of Administrative and Economic Sciences, Al-Quds Open University,
Jenin, State of Palestine
Abstract
Purpose –This study aims to conduct a review and analysisof the literature on Shariah audit compliance
by examining the difference betweeninternal and external auditors, the scope of internal Shariah audits and
the qualificationof Shariah auditors.
Design/methodology/approach –The current study used content analysis and the descriptive
approach to achieve the main objective of the study. To ensure that Islamic Financial Institutions’(IFIs)
practices preserve Shariah principles and values when providing Shariah-compliant products and services,
this audit will be used tosupervise and monitor the operations of IFIs. The main goalof Shariah compliance
auditing is to protect the interests of IFIs stakeholders, including account holders, shareholders, creditors,
management and employees,as well as the general public while ensuringthat the mechanisms of checks and
balances in place are appropriate and tailoredtothe goals and missions of its establishment following the
Maqasid Al-Shariah.
Findings –The findings of this studyattempt to contribute to the body of knowledge surrounding Shariah
audit compliance by advising IFIsonthevalue of Shariah compliance auditing in addressing the needs of its
stakeholders. As a result,the benefits of Shariah compliance audits will be maximized, and future legislative
changeswill beimplemented to reduceorcompletely removethe risk ofShariah’s failureto comply.
Practical implications –This research advises IFIson the usefulness of Shariah compliance auditing in
addressing the demands of its stakeholders to add to the body of knowledge on Shariah audit compliance.
Moreover, all parties involved to take action to reduce the gap that will significantly affect stakeholders’
confidence, particularly concerning the Shariah compliance of the IFIs’products and services on their
operationsand activities.
JEL classification –G30, G34, M42, M48
The authors express their appreciation and thanks to the Emerald Publishing Group, and they extend
special thanks to the Journal of Money Laundering Control, which will receive the paper and help to
publish it, and great thanks and appreciation to the reviewers and the editorial board of the journal.
Disclosure statement: The authors reported no potential conflict of interest.
Funding: The authors declare that this research has not been funded by any party.
Since acceptance of this article, the following author has updated their affiliation: Nemer Badwan
is at Faculty of Graduate Studies, Palestine Technical University –Kadoorie (PTUK), Ramallah, State
of Palestine.
Shariah
compliance
auditing
845
Journalof Money Laundering
Control
Vol.27 No. 5, 2024
pp. 845-857
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-08-2023-0132
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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