The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia
The importance of shariah members in Islamic financial institutions, in some of its aspects, is to audit and check the financial system in accordance to Islam.Thus, independence status of auditor is complement to the shariah members to function effectively.To be independence shariah auditor, there i...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Academy of IRMBR
2015
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/21935/1/IRMBR%20%204%201%202015%20110%20120.pdf |
| _version_ | 1825804652814270464 |
|---|---|
| author | Ahmad, Mohd Rodzi Al-Aidaros, Al-Hasan |
| author_facet | Ahmad, Mohd Rodzi Al-Aidaros, Al-Hasan |
| author_sort | Ahmad, Mohd Rodzi |
| collection | UUM |
| description | The importance of shariah members in Islamic financial institutions, in some of its aspects, is to audit and check the financial system in accordance to Islam.Thus, independence status of auditor is complement to the shariah members to function effectively.To be independence shariah auditor, there is need to have separation of duties between shariah auditors and Shariah Committee to perform their duties.The purpose of this study is to assess the importance of the independent of the shariah members in Islamic Cooperative Banks in Malaysia.The methodology adopted in this study is limited to questionnaires distributed to 50 professional accountants in Malaysia.Data were analyzed using descriptive analysis.The results proved that fifty two percent of shariah auditors had total independence and played important role in ensuring shariah compliant of products and activities and their practices have been well accepted by stakeholders of Islamic Cooperative Banks.Moreover, sixty seven percent shariah auditors have been given a free reign to perform their functions and were free from intervention by the Shariah Committee during the audit process.However, shariah auditors have less team members to perform their audit services. Furthermore, most shariah auditors agree that there is a lack of expertise or human talent to perform these sorts of audit services currently in Malaysia. Finally, this study has shown that most auditors agree that there is a need to enhance their knowledge and expertise in shariah auditing in order to improve and master shariah accounting and auditing processes. |
| first_indexed | 2024-07-04T06:19:11Z |
| format | Article |
| id | uum-21935 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:19:11Z |
| publishDate | 2015 |
| publisher | Academy of IRMBR |
| record_format | eprints |
| spelling | uum-219352017-05-02T06:55:38Z https://repo.uum.edu.my/id/eprint/21935/ The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia Ahmad, Mohd Rodzi Al-Aidaros, Al-Hasan HF5601 Accounting The importance of shariah members in Islamic financial institutions, in some of its aspects, is to audit and check the financial system in accordance to Islam.Thus, independence status of auditor is complement to the shariah members to function effectively.To be independence shariah auditor, there is need to have separation of duties between shariah auditors and Shariah Committee to perform their duties.The purpose of this study is to assess the importance of the independent of the shariah members in Islamic Cooperative Banks in Malaysia.The methodology adopted in this study is limited to questionnaires distributed to 50 professional accountants in Malaysia.Data were analyzed using descriptive analysis.The results proved that fifty two percent of shariah auditors had total independence and played important role in ensuring shariah compliant of products and activities and their practices have been well accepted by stakeholders of Islamic Cooperative Banks.Moreover, sixty seven percent shariah auditors have been given a free reign to perform their functions and were free from intervention by the Shariah Committee during the audit process.However, shariah auditors have less team members to perform their audit services. Furthermore, most shariah auditors agree that there is a lack of expertise or human talent to perform these sorts of audit services currently in Malaysia. Finally, this study has shown that most auditors agree that there is a need to enhance their knowledge and expertise in shariah auditing in order to improve and master shariah accounting and auditing processes. Academy of IRMBR 2015 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/21935/1/IRMBR%20%204%201%202015%20110%20120.pdf Ahmad, Mohd Rodzi and Al-Aidaros, Al-Hasan (2015) The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia. International Review of Management and Business Research, 4 (1). pp. 110-120. ISSN 2306 - 9007 http://www.irmbrjournal.com/papers/1425723742.pdf |
| spellingShingle | HF5601 Accounting Ahmad, Mohd Rodzi Al-Aidaros, Al-Hasan The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia |
| title | The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia |
| title_full | The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia |
| title_fullStr | The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia |
| title_full_unstemmed | The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia |
| title_short | The need of independent shariah members in Islamic cooperative banks: an empirical study of professional accountants in Malaysia |
| title_sort | need of independent shariah members in islamic cooperative banks an empirical study of professional accountants in malaysia |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/21935/1/IRMBR%20%204%201%202015%20110%20120.pdf |
| work_keys_str_mv | AT ahmadmohdrodzi theneedofindependentshariahmembersinislamiccooperativebanksanempiricalstudyofprofessionalaccountantsinmalaysia AT alaidarosalhasan theneedofindependentshariahmembersinislamiccooperativebanksanempiricalstudyofprofessionalaccountantsinmalaysia AT ahmadmohdrodzi needofindependentshariahmembersinislamiccooperativebanksanempiricalstudyofprofessionalaccountantsinmalaysia AT alaidarosalhasan needofindependentshariahmembersinislamiccooperativebanksanempiricalstudyofprofessionalaccountantsinmalaysia |