Reporting assurance for religious compliance in Islamic banks: are we there yet?
Shariah boards (SBs) play a unique role by providing assurance on religious compliance of Islamic banks. In fulfilling this governance responsibility, SB members must exercise diligence, independence and be transparent at all times. In this study, we examine the distinct governance structure of Mala...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Serials Publications
2015
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| Online Access: | http://psasir.upm.edu.my/id/eprint/46150/ http://psasir.upm.edu.my/id/eprint/46150/1/Reporting%20assurance%20for%20religious%20compliance%20in%20Islamic%20banks%20are%20we%20there%20yet.pdf |
| _version_ | 1848850604630212608 |
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| author | Sheikh Hassan, Ahmad Fahmi Mohd Haridan, Nurfarahin Mohd Zamil, Nor Aiza Muhammad, Junaina |
| author_facet | Sheikh Hassan, Ahmad Fahmi Mohd Haridan, Nurfarahin Mohd Zamil, Nor Aiza Muhammad, Junaina |
| author_sort | Sheikh Hassan, Ahmad Fahmi |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Shariah boards (SBs) play a unique role by providing assurance on religious compliance of Islamic banks. In fulfilling this governance responsibility, SB members must exercise diligence, independence and be transparent at all times. In this study, we examine the distinct governance structure of Malaysian Islamic banks as the country is perceived to have the most developed governance framework in the Islamic world. We critically evaluate the literature on the role and function of SBs and assess the existing support mechanisms available and identify challenges in providing effective religious compliance reviews. We highlight the inherent limitations of Malaysian SBs in performing the compliance review with studies reporting the independence of this authority being compromised with SBs appearing to rubber-stamp decisions already taken by top management. Finally, we highlight serious concern regarding the quality of the religious assurance provided in annual reports of Islamic banks and question as to who holds the ultimate right to provide the all-importantreligious assurance for the Islamic finance industry? |
| first_indexed | 2025-11-15T10:08:56Z |
| format | Article |
| id | upm-46150 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:08:56Z |
| publishDate | 2015 |
| publisher | Serials Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-461502018-05-03T01:50:01Z http://psasir.upm.edu.my/id/eprint/46150/ Reporting assurance for religious compliance in Islamic banks: are we there yet? Sheikh Hassan, Ahmad Fahmi Mohd Haridan, Nurfarahin Mohd Zamil, Nor Aiza Muhammad, Junaina Shariah boards (SBs) play a unique role by providing assurance on religious compliance of Islamic banks. In fulfilling this governance responsibility, SB members must exercise diligence, independence and be transparent at all times. In this study, we examine the distinct governance structure of Malaysian Islamic banks as the country is perceived to have the most developed governance framework in the Islamic world. We critically evaluate the literature on the role and function of SBs and assess the existing support mechanisms available and identify challenges in providing effective religious compliance reviews. We highlight the inherent limitations of Malaysian SBs in performing the compliance review with studies reporting the independence of this authority being compromised with SBs appearing to rubber-stamp decisions already taken by top management. Finally, we highlight serious concern regarding the quality of the religious assurance provided in annual reports of Islamic banks and question as to who holds the ultimate right to provide the all-importantreligious assurance for the Islamic finance industry? Serials Publications 2015 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/46150/1/Reporting%20assurance%20for%20religious%20compliance%20in%20Islamic%20banks%20are%20we%20there%20yet.pdf Sheikh Hassan, Ahmad Fahmi and Mohd Haridan, Nurfarahin and Mohd Zamil, Nor Aiza and Muhammad, Junaina (2015) Reporting assurance for religious compliance in Islamic banks: are we there yet? International Journal of Applied Business and Economic Research, 13 (6). pp. 1-10. ISSN 0972-7302 |
| spellingShingle | Sheikh Hassan, Ahmad Fahmi Mohd Haridan, Nurfarahin Mohd Zamil, Nor Aiza Muhammad, Junaina Reporting assurance for religious compliance in Islamic banks: are we there yet? |
| title | Reporting assurance for religious compliance in Islamic banks: are we there yet? |
| title_full | Reporting assurance for religious compliance in Islamic banks: are we there yet? |
| title_fullStr | Reporting assurance for religious compliance in Islamic banks: are we there yet? |
| title_full_unstemmed | Reporting assurance for religious compliance in Islamic banks: are we there yet? |
| title_short | Reporting assurance for religious compliance in Islamic banks: are we there yet? |
| title_sort | reporting assurance for religious compliance in islamic banks: are we there yet? |
| url | http://psasir.upm.edu.my/id/eprint/46150/ http://psasir.upm.edu.my/id/eprint/46150/1/Reporting%20assurance%20for%20religious%20compliance%20in%20Islamic%20banks%20are%20we%20there%20yet.pdf |