According of social justice in order to achieve

to Kassim (2009), the practice of Shari’ah
auditing is underestimated by IFIs in Malaysia resulting in the failure of IFIs
to achieve their goals and the Islamic system is one that focuses on the
promotion of social justice in order to achieve the objective of Maqasid Ash-Shari’ah based on its formation.
This clearly shows that management of IFIs still does not have enough
understanding in the framework of Shari’ah
auditing. Report from Yahya and Mahzan (2012) explains that Shari’ah IFI’s practice in Malaysia is
still at a low level and Shari’ah audits
need to be promoted by regulators. It is also important for IFI to achieve the
final goal as long as it does not conflict with the fatwa, guidelines and
instructions issued by the Fatwa and Shari’ah Supervisory Board (SSB). The
success of IFI operations that comply with all the rules of Shari’ah is entirely dependent on the
structure of management control within the organization.

of the major challenges faced by the external auditors is the lack of knowledge
and expertise on Shari’ah when asked
to carry out the Shari’ah auditing
work. The Shari’ah auditors are not
only assuming the assurance that the IFIs are in accordance with Shari’ah to management and shareholders,
but also responsible in helping to maintain the preservation of Islamic values
for Muslims in particular and society as a whole. Shari’ah auditors with extensive Islamic knowledge of the Shari’ah can indirectly influence others
and assist IFI in achieving their goals because people with religious knowledge
and Shari’ah are highly respected and
are also in line with the Al-Quran, Sunnah and Ijma’. As a Shari’ah
auditor, it is must to have a high level of knowledge and education about Shari’ah.

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studies show that there is a gap between the need and who actually practice the
Shari’ah audit where there is a
representation that IFIs in Malaysia do not meet the requirements and carry out
Shari’ah seriously in carrying out
their business operations. This is due to the unclear scope of the Shari’ah auditing framework by
management in Malaysia and the gap is also due to the fact that Shari’ah’s own auditor has no knowledge
of Shari’ah Principles as required to
complete the audit. Even with the implementation of the Shari’ah audit framework is relevant enough to increase the number
of IFIs in Malaysia, it is still a requirement for the auditors to have
sufficient Shari’ah knowledge to
produce successful Shari’ah audits. Kasim
et al. (2009), it is difficult for IFI to fulfill all kind of benefit to the
people through socio-economic justice without the proper structure of the Shari’ah auditing process, and thus
achieve Maqasid Ash-Shari’ah. Issues
also arise to the Shari’ah auditors,
the extent to which the examination of financial reporting and IFI business
operations is conducted.

lack of systems related to Shari’ah
auditing is also one of the factors contributing to the failure of the IFI
system in Malaysia. The public will lose their confidence in the auditor’s work
and financial reporting when they begin to evaluate the way auditor acts in
detecting fraud, what auditor do to reduce the manipulation of issues and
re-evaluating the level of trust they perform in the audit to assure and ensure
that the company’s activities are in line with economic activity. Haniffa
(2010) saw the auditor as someone important in the middle of human activities
to protect and improve the condition of human life in all its dimensions. 


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