Speaker
Description
This study review appears into the crucial arena of Shariah audit research in Malaysia using a literature review. From 2018 to 2023, 20 articles were retrieved from the Scopus database. This study makes numerous additions to the field, as the current review provides a full systematic examination of the developing literature on Shariah auditing from various perspectives, including geographical distribution and theoretical lenses. The findings indicate that Shariah audit research has increased in recent years, with Malaysia conducting the majority of the research when compared to other Islamic countries. Furthermore, the literature focuses primarily on Shariah inspection through the lens of agency, whereas other theories such as the Maqasid al Shariah and Islamic accountability theory have received insufficient attention. As a result, the literature's focus on the Malaysian setting fails to provide appropriate perspectives on the subject, limiting the study area. Furthermore, the assessment tackles a long-standing concern that has existed for more than three decades: Shariah auditing in the developing Islamic finance business. It accepts that gathering thorough insights into the current state of Shariah audit study has proven to be a difficult task. The major goal of this literature review is to identify the key elements determining the success of Shariah auditing in Malaysia. Furthermore, it emphasizes the goal to conduct a thorough analysis of previous literature, with an emphasis on evaluating Shariah governance and the obstacles and opportunities that auditors confront during the auditing process in Islamic banks. The findings of the reviewed studies highlight the significant and multifaceted impact of Shariah auditing and governance on the overall performance of Islamic banks, emphasizing the importance of strengthening regulatory frameworks and professional standards, which can have a positive impact on Shariah audits. The reviewed study also recommends prospective areas for further investigation and policymaking to improve the effectiveness and legitimacy of Shariah compliance within Islamic financial institutions.
Keywords: Shariah audit, Shariah governance framework, Shariah audit effectiveness.
