Awareness level of Shari’ah Scholars, Shari'ah Advisors, Auditors and Accounting Academicians Regarding Shari'ah Auditing Issues in Islamic Banks of Pakistan

Abstract

Shari'ah audit includes auditing and assurance processes for products, transactions, disbursements of financing, profit distribution, policy for depositors, penalty charges, accounting recognition and measurement as well as financial reporting. The study examines the awareness level regarding Shari'ah Auditing issues in Islamic Banks of Pakistan. Some of the areas under consideration are awareness of respondents regarding Shari'ah audit, the appointment of Shari'ah auditor their requisite qualification and regarding the scope of Shari'ah audit. Survey questionnaires were distributed among Shari'ah scholars, auditing practitioners of Islamic banks and accounting academicians as these are the practitioners who are facing the issues while performing their tasks in the field and their views are very crucial for the development of a stable Shari'ah-compliance framework. The study finds that the awareness about the issues of Shari'ah auditing in Pakistan is low among accounting academicians. Further, the collaboration of institutions is required to fill this gap and there is a need for harmonization of practices with global standards.