Supiah SallehZurina ShafiiMustafa Mohd HanefahMuhammad Iqmal Hisham KamaruddinNurazalia ZakariaNur Amni Mahmud Sabri2024-05-312024-05-312022-12e-ISBN: 9789670001807https://pkausim.usim.edu.my/wp-content/uploads/2022/12/Prosiding-EA_2022.pdfhttps://oarep.usim.edu.my/handle/123456789/18694E-Proceeding (Extended Abstract) SAIS 2022 Seminar Antarabangsa Islam dan Sains 2022 : “Memimpin Integrasi Ilmu Naqli dan Aqli”/ Editor: Nuradli Ridzwan Shah Mohd Dali , Irwan Mohd Subri , Siti Rubaini Mat. 1 December 2022 I Venue: Fakulti Perubatan dan Sains Kesihatan, USIM Organized by Persatuan Kakitangan Akademik Universiti Sains Islam Malaysia (PKAUSIM), Faculty of Syariah and Law, USIM and the Institute of Fatwa and Halal (iFFAH)This study focuses on development of Shariah governance and audit in Islamic Cooperatives in Malaysia. Suruhanjaya Koperasi Malaysia (SKM) governs Islamic cooperatives, which aim to stimulate the development of co-operatives in accordance with Shariah. SKM provides guidelines for Islamic cooperatives to manage the operation of institutions. The development of Shariah governance and audit is essential to complement the Shariah compliance mechanism that already in place and practised internally in the microfinance institutions. Strong regulations, framework and guidelines are needed to uphold the practice of Shariah compliance. Roundtable discussions was used as methodology of the study with the industry practitioners in Islamic Cooperatives. Apart from that, this study also used current guidelines in Islamic Cooperatives as benchmarking practices. SKM published few guidelines related to Shariah governance to assist the operation of cooperatives. Based on the finding, there is an existence of gap in regulation, framework, and guidelines in governing Shariah compliance principles in Islamic Cooperatives. This is crucial since regulation, framework and guidelines in Shariah governance and audit in Islamic Cooperatives will increase the level of trust of the stakeholders that the activities and operations are Shariah-compliant. Also, giving the standardize framework it will contribute towards managing the risk of the microfinance institutions and, within the grander scheme of things, contribute to the growth of the industry and the economy by providing adequate disclosure for the stakeholders to make informed decisions.en-USShariah audit, Shariah Governance, gaps, microfinance institutionsArticle94100