Mohd Ali N.A.Shafii Z.Shahimi S.2024-05-292024-05-2920201759081710.1108/JIABR-09-2016-01062-s2.0-85078280471https://www.scopus.com/inward/record.uri?eid=2-s2.0-85078280471&doi=10.1108%2fJIABR-09-2016-0106&partnerID=40&md5=9fd291b766e3954c5d6fd583088f5691https://oarep.usim.edu.my/handle/123456789/10167Purpose: The purpose of this study is to identify the competencies required of Shari’ah auditor (SAR) in the Islamic banking environment. Design/methodology/approach: A qualitative approach using a multiple-case study through the semi-structured interview was used. Data was gathered from a representative of Central Bank of Malaysia, and 30 other respondents consist of the Head of Shari’ah audit (HSA) and SAR from four types of banking institutions. A focus group discussion was later conducted to validate the model of competency proposed. Findings: Results show a mixed practice on the recruitment of SAR. Most banking institutions prefer to use their existing internal auditors as opposed to recruiting fresh graduates or acquire experienced SAR from other financial institutions. Knowledge in Shari’ah, Islamic banking and Fiqh Muamalat is considered as the essential knowledge component for SAR, while auditing is revealed as the core skill that SAR should have to perform the Shari’ah audit effectively. The study also found that personal skills such as willingness to learn and teamwork as the complementing characteristics to the knowledge and skill components, as a package required for a competent SAR. Research limitations/implications: The results of this study would have both theoretical and practical contributions to the regulatory bodies, academicians and professionals. Theoretically, this study made a concerted effort to enhance prior studies on the qualification aspect of Shari’ah audit literature, emphasizing the elements necessary to recruit competent SARs in the Islamic financial institutions (IFIs). The element of “time” has been infused to the existing effective job performance theory add dynamics to the model, recognizing the need for years of experience as part of elements necessary to become competent SAR. In practice, the competency model is recommended to the industry players in pooling competent talents in the Islamic finance industry (R4) and (B5). In spite of its limitation to confine only to the IFIs, it sheds light on human resource management within the Islamic organizations. Practical implications: The study would contribute to the practitioners as a guideline to the Human Resource Department in recruiting their SAR and also for succession planning purposes. Originality/value: A competency model for SAR was proposed focusing on building knowledge, core and personal skills that can be used as guidance in determining the criteria needed for a competent SAR, which is a new dimension for Islamic auditing literature. The sub-objective of determining the elements of competency, as well as understanding the current practice of recruiting the SAR became the input in the building of the competency model.en-USCompetencyShari’ahShari’ah auditorsShari’ah governanceArticle377399112