IDEAS home Printed from https://ideas.repec.org/p/gtr/gatrjs/jfbr193.html
   My bibliography  Save this paper

External Shariah Audit Services from Practitioners' Views: The Case of Malaysian Islamic Banks

Author

Listed:
  • M R Yasoa

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-2-Name: S F Muhamad Author-2-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-3-Name: T Abdullah Author-3-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-4-Name: M N H Yusoff Author-4-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-5-Name: N M Said Author-5-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-6-Name: S A Zainuddin Author-6-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-7-Name: N A M Nasir Author-7-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective - This paper investigates the possibility and feasibility of Malaysia's Islamic banking industry hiring external Shariah audit (ESA) services in the audit fraternity as one of the Shariah governance mechanisms. Some of the scholars argued that ESA is more independent and is able to strengthen the existing Shariah compliance in the industry. Methodology – This study employs a qualitative method by utilising semi-structured interviews with nine key industry players: Shariah auditors, Heads of Shariah audit, Shariah Committee (SC) Member, and Chief Shariah Officer. Data gathered from the interviews was transcribed and analysed using Atlas.ti software. Findings – A series of interviews reveal that given the current practices by the Islamic banking industry, it could be inferred that the Malaysian Islamic banking industry is not ready to exercise the ESA practices. This unreadiness is due to several factors, such as ESA costs outweighing its benefits, the fear of reputational risk, and anxiety of leaking confidential information to rivals. Novelty – The Shariah audit research especially relates to external Shariah audit is considered limited. Type of Paper - Empirical"

Suggested Citation

  • M R Yasoa, 2021. "External Shariah Audit Services from Practitioners' Views: The Case of Malaysian Islamic Banks," GATR Journals jfbr193, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jfbr193
    DOI: https://doi.org/10.35609/jfbr.2021.6.3(4)
    as

    Download full text from publisher

    File URL: http://gatrenterprise.com/GATRJournals/JFBR/pdf_files/JFBR-Vol-6(3)/4.M%20R%20Yasoa.pdf
    Download Restriction: http://gatrenterprise.com/GATRJournals/online_submission.html
    File URL: https://libkey.io/https://doi.org/10.35609/jfbr.2021.6.3(4)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    External Shariah audit; Islamic Banks; qualitative method; Shariah governance; Malaysia;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gtr:gatrjs:jfbr193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Dr. Abd Rahim Mohamad (email available below). General contact details of provider: http://gatrenterprise.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.