Shafii Z.Salleh S.Zakaria N.2024-05-292024-05-2920149781629489063; 97816294890562-s2.0-84953388872https://www.scopus.com/inward/record.uri?eid=2-s2.0-84953388872&partnerID=40&md5=60cee5f146981f580a35d6909446df8dhttps://oarep.usim.edu.my/handle/123456789/9947Shariah audit is important as the third line of defence in ensuring the operations ofIslamic Financial Institutions (IFIs) are in line with Shariah principles. The operationsrefer not only to day to day operations, process and procedures and management recordsbut also the financial statements of the IFIs. Shariah audit gives an indication to themarket that the IFIs are complying with the Shariah guidelines. This is especiallyimportant as the market is keener on knowing and seeing that IFIs perform its bidding.The resurgence of Islamic finance over the past 30 years plus the sub-prime crisis hascaused greater emphasis for the IFIs to be ever more Shariah-compliant. The purpose ofthis chapter is to provide an overview on the importance of Shariah audit as one of thelines of defence in terms of internal control for IFIs. Secondly, the chapter also providessuggested auditable areas for the audit scope of Shariah audit in the financial statementsof IFIs. Accordingly, the chapter provides guidance for future empirical and policyimpact research on audit scope for Shariah audit in financial statements of IFIs. � 2014 Nova Science Publishers, Inc.en-USBook Chapter145154