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Professionalizing the role of Shari'ah auditors: How Malaysia can generate economic benefits

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  • Najeeb, Syed Faiq
  • Ibrahim, Shahul Hameed Mohamed

Abstract

The paper presents arguments on the need for inventing the profession of Shari'ah auditing and why Malaysia should take the lead to create an Association of Chartered Shari'ah Accountants and Auditors (ACSAA) that can result in long run economic benefits for the country. The paper also critically analyzes how accounting and auditing membership is being exported worldwide by few dominant players to generate economic benefits for their respective origin countries and how existing Islamic accounting and auditing qualification suppliers have failed to deliver and create holistic Shari'ah accountants/auditors required to serve in an ideal Islamic economy. The paper proposes 2 models through which ACSAA can be made a practical reality.

Suggested Citation

  • Najeeb, Syed Faiq & Ibrahim, Shahul Hameed Mohamed, 2014. "Professionalizing the role of Shari'ah auditors: How Malaysia can generate economic benefits," Pacific-Basin Finance Journal, Elsevier, vol. 28(C), pages 91-109.
    • Handle: RePEc:eee:pacfin:v:28:y:2014:i:c:p:91-109
    DOI: 10.1016/j.pacfin.2013.10.009
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    Cited by:

    1. Kok, Seng Kiong & Shahgholian, Azar, 2023. "The impact of proximity within elite corporate networks on the Shariah governance-firm performance nexus: Evidence from the global Shariah elite," Emerging Markets Review, Elsevier, vol. 54(C).
    2. Godlewski, Christophe J. & Turk-Ariss, Rima & Weill, Laurent, 2016. "Do the type of sukuk and choice of shari’a scholar matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 132(S), pages 63-76.
    3. Nurfarahin M. Haridan & Ahmad F. S. Hassan & Yusuf Karbhari, 2018. "Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 1015-1043, December.
    4. Abdul Halim, Zairihan & How, Janice & Verhoeven, Peter & Hassan, M. Kabir, 2019. "The value of certification in Islamic bond offerings," Journal of Corporate Finance, Elsevier, vol. 55(C), pages 141-161.
    5. Christophe J. GODLEWSKI & Rima Turk-Ariss & Laurent Weill, 2014. "What Influences Stock Market Reaction to Sukuk Issues? The Impact of Scholars and Sukuk Types," Working Papers of LaRGE Research Center 2014-03, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    6. Kok, Seng Kiong & Giorgioni, Gianluigi & Farquhar, Stuart, 2022. "The trade-off between knowledge accumulation and independence: The case of the Shariah supervisory board within the Shariah governance and firm performance nexus," Research in International Business and Finance, Elsevier, vol. 59(C).
    7. Godlewski, Christophe J. & Turk-Ariss, Rima & Weill, Laurent, 2016. "Do the type of sukuk and choice of shari’a scholar matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 132(S), pages 63-76.
    8. Ahmad MUHAMMAD GUMEL, 2020. "Islamic Double Degree Program: A New Human Resource Development Model For Islamic Banking Industry," Proceedings of Business and Management Conferences 10112511, International Institute of Social and Economic Sciences.
    9. Kok, Seng Kiong & Akwei, Cynthia & Giorgioni, Gianluigi & Farquhar, Stuart, 2022. "On the regulation of the intersection between religion and the provision of financial services: Conversations with market actors within the global Islamic financial services sector," Research in International Business and Finance, Elsevier, vol. 59(C).
    10. Abdul Halim, Zairihan & Xu, Suichen & Abdul Majid, Norakma, 2020. "Earnings management around Islamic bonds issuance," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 195-205.
    11. repec:zbw:bofitp:2014_021 is not listed on IDEAS
    12. Azam Abdelhakeem Khalid Ahmed & Adel M. Sarea, 2019. "Factors Influencing Internal Shariah Audit Effectiveness: Evidence From Bahrain," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 196-210, October.

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    More about this item

    Keywords

    Shari'ah audit; Professional accounting bodies; Islamic finance;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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