TY - JOUR AU - Ab Ghani, Nur Laili AU - Mohd Ariffin, Noraini AU - Abdul Rahman, Abdul Rahim PY - 2019/06/29 Y2 - 2024/03/29 TI - The Measurement of Effective Internal Shariah Audit Function in Islamic Financial Institutions JF - International Journal of Economics, Management and Accounting JA - IJEMA VL - 27 IS - 1 SE - Articles DO - 10.31436/ijema.v27i1.600 UR - https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/600 SP - 141-165 AB - <p>Assurance of <em>Sharīʿah</em> compliance through the <em>Sharīʿah</em> audit function is crucial for enhancing the integrity of Islamic Financial Institutions (IFIs). Effective <em>Sharīʿah</em> audit function during periodical assessment will ensure effective internal control system for <em>Sharīʿah</em> compliance in IFIs. This paper examines the measurement of effective internal <em>Sharīʿah</em> audit function in IFIs. It critically reviews the emerging literature on the importance of eight components for measuring effective internal <em>Sharīʿah</em> audit function. The components are <em>Sharīʿah</em> audit objective, <em>Sharīʿah</em> audit scope, <em>Sharīʿah</em> audit and governance, <em>Sharīʿah</em> audit charter, competency of internal <em>Sharīʿah</em> auditors, <em>Sharīʿah</em> audit process, reporting requirements and independence. These components are important for achieving effective internal control over <em>Sharīʿah</em> compliance. The study also performs a structured interview with Islamic financial experts to validate the measurement before it is further examined in future empirical studies. The main argument of this paper is that highly effective internal <em>Sharīʿah</em> audit function leads to inclusive opinion on reasonable assurance of <em>Sharīʿah</em> compliance. Assurance of <em>Sharīʿah</em> compliance should enhance stakeholder confidence and satisfy the growing demand for IFIs accountability and sustainability.</p> ER -