Publication:
Shariah Governance and Audit Practices in Islamic Co-operatives: An Audit Expectation-performance Gap Analysis

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Abstract

This study focuses on the inclusion of Shariah governance and audit best practices in Islamic co-operatives in Malaysia. The development of Shariah governance and audit is essential to complement the Shariah compliance mechanisms already in place and practiced internally within these Islamic co-operatives. Strong regulations, frameworks, and guidelines are needed to uphold Shariah compliance practices. The Delphi method was used as the study’s methodology, involving a series of discussions with industry practitioners in Islamic co-operatives. Based on the findings, there is an existing expectation-performance gap in regulations, frameworks, and guidelines; independence and competency; and Shariah audit scope in governing Shariah compliance principles in Islamic co-operatives. This is crucial because well-developed regulations, frameworks, and guidelines in Shariah governance and audit will increase stakeholders’ trust that the activities and operations of Islamic co-operatives are Shariah-compliant. Additionally, providing a standardized framework will help manage risks in Islamic co-operatives and, in the broader context, contribute to the industry’s and the economy’s growth by offering stakeholders adequate information to make informed decisions.

Description

Corporate Law & Governance Review Volume 6, Issue 3 (page: 72-80)

Keywords

Shariah Audit, Shariah Governance, Islamic Co-Operatives, Expectation Gap, Performance Gap

Citation

Supiah Salleh, Muhammad Iqmal Hisham Kamaruddin, Zurina Shafii, Mustafa Mohd Hanefah, Nurazalia Zakaria, Wan A’tirah Mahyudin, & Nur Amni Mahmud Sabri. (2024). Shariah governance and audit practices in Islamic co-operatives: An audit expectation-performance gap analysis. Corporate Law & Governance Review, 6(3), 72–80. https://doi.org/10.22495/clgrv6i3p8