A Comparative Analysis between Shariah Audit and Shariah Review in Islamic Banks in Malaysia: Practitioners' Perspective

Abstract

This paper compares Shariah audit and Shariah review in Islamic banks in Malaysia based on reporting structure, independence, the scope of duties, technology used, guideline and methodology, coverage period, and officers' qualification. The study employs a qualitative method by utilizing semi-structured interviews with nine (9) key industry players. Data gathered from a series of interviews have been transcripted and analyzed using Atlas.ti. This study uncovers that Shariah review and Shariah audit have apparent differences and play their roles as a second and third line of defense, respectively, that eventually could provide a stimulus to Shariah governance and strengthen market confidence.