Shariah Review and Shariah Audit: Shariah compliance tools in Islamic banks

Shariah review and Shariah audit serve as a second and third line of defense in Islamic banks. This study intends to analyse the differences between these two Shariah organs based on roles, guidelines and methodology, scope of duties, technology, independence, and reporting structure as well as officers’ qualifications. A qualitative approach is used by employing semi-structured interviews with nine (9) practitioners. Data gathered from interviews have been transcripted and analyzed using Atlas.ti. Findings reveal that a clear function of Shariah review and Shariah audit is pertinent to effectively mitigate risks. This scenario could eventually provide a stimulus to improve governance and market confidence. Keywords: Shariah compliance, Shariah review, Shariah audit, qualitative method eISSN 2514-7528 ©2022. The authors. Published for AMER and cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under the responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers) and cE-Bs (Centre for Environment-Behaviour Studies), College of Built Environment, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/jabs.v7i21.407