Advanced Shari'ah Audit and Shari'ah Governance
The Shari'ah governance framework, the SSB, compliance and internal and external Shari'ah audit in light of AAOIFI standards
Advanced · 32 hours · 48 lessons · Language: English and Arabic · ID: IFS-COU-0059
USD 30Original price USD 50
Included in the annual membership.
No expiry
Shari'ah governance and Shari'ah audit are what make an Islamic financial institution trustworthy. This course is a detailed, demanding treatment of how the framework works in practice and how a Shari'ah auditor plans, performs and reports an audit, in light of the AAOIFI governance and auditing standards.
It covers the Shari'ah governance framework, the Shari'ah supervisory board and its decision-making and reporting, the Shari'ah compliance function and the board's committees, internal Shari'ah audit and its audit universe, risk-based planning, evidence and sampling, audit programmes for financing products, investment accounts, profit distribution and purification, treasury, sukuk and takaful, grading and reporting findings, external Shari'ah audit and ratings, and governance of windows, waqf, crowdfunding and ethics.
The course has 12 modules with readings, case studies with worked audit procedures, slides, study notes and practice quizzes. It is one of the most demanding courses on ifSPACE: the final exam has 100 questions drawn from a larger bank, mostly scenarios, in 150 minutes, with 80% to pass and one attempt.
This course is independent educational material written by ifSPACE in its own words. It does not reproduce AAOIFI texts, is not affiliated with AAOIFI and is not a fatwa.
What you will learn
- Explain the Shari'ah governance framework, its organs and the hierarchy of Shari'ah sources
- Assess the independence, decision-making and reporting of a Shari'ah supervisory board
- Design a Shari'ah compliance function and its relationship with the board, its committees and the three lines
- Set up an internal Shari'ah audit function with a mandate, a charter and an audit universe
- Build a risk-based Shari'ah audit plan from an assessment of Shari'ah non-compliance risk
- Gather sufficient evidence, select samples and document Shari'ah audit work
- Apply audit programmes and red flags to financing, deposit, treasury, sukuk and takaful activities
- Recalculate profit distributions and test purification of non-compliant income
- Grade findings, write audit reports and follow up corrective action
- Explain external Shari'ah audit, the external auditor's responsibilities and Shari'ah ratings
Syllabus
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1.The Shari'ah governance framework in depth
- Welcome to the courseFree preview1 min
- The framework, its organs and the hierarchy of Shari'ah sources (GS 1 (2024))Free preview45 min
- Module 1 presentation15 min
- Module 1 practice quiz20 min
2.The Shari'ah supervisory board: appointment, decisions and reporting
- Appointment, independence, decision-making and the annual report (GS 18, 20, 21)45 min
- Case study: a contested pronouncement30 min
- Module 2 presentation15 min
- Module 2 practice quiz20 min
3.The Shari'ah compliance function, the board and its committees
- Compliance, the audit and governance committee and the three lines (GS 9, GS 4)45 min
- Case study: building a compliance function30 min
- Module 3 presentation15 min
- Module 3 practice quiz20 min
4.Internal Shari'ah audit: mandate, independence and the audit universe
- The internal Shari'ah audit function and its audit universe (GS 11)45 min
- Module 4 presentation15 min
- Module 4 practice quiz20 min
5.Risk-based Shari'ah audit planning
- Assessing Shari'ah non-compliance risk and building the audit plan45 min
- Case study: scoring risks and building an annual plan30 min
- Module 5 presentation15 min
- Module 5 practice quiz20 min
6.Evidence, sampling and working papers in Shari'ah audit
- Evidence, sampling, testing and documenting Shari'ah audit work45 min
- Case study: sampling murabahah files30 min
- Module 6 presentation15 min
- Module 6 practice quiz20 min
7.Auditing financing products: murabahah, tawarruq, ijarah and musharakah
- Audit programmes and red flags for financing products (SS 8, 9, 12, 20, 30)45 min
- Case study: a home finance portfolio review30 min
- Module 7 presentation15 min
- Module 7 practice quiz20 min
8.Auditing deposits, investment accounts, profit distribution and purification
- Investment accounts, profit distribution and the charity fund (SS 40, FAS 27, FAS 35)45 min
- Case study: recalculating a profit distribution30 min
- Module 8 presentation15 min
- Module 8 practice quiz20 min
9.Auditing treasury, sukuk and takaful
- Treasury, sukuk and takaful under the Shari'ah and governance standards (SS 1, 17, 26; GS 12)45 min
- Case study: a treasury and sukuk desk audit30 min
- Module 9 presentation15 min
- Module 9 practice quiz20 min
10.Findings, grading, reporting and follow-up
- Classifying and grading findings, reporting and follow-up45 min
- Case study: writing the audit report30 min
- Module 10 presentation15 min
- Module 10 practice quiz20 min
11.External Shari'ah audit, the external auditor and Shari'ah ratings
- External Shari'ah audit, ASIFI 1-6 and Shari'ah ratings (GS 10)45 min
- Case study: relying on internal Shari'ah audit30 min
- Module 11 presentation15 min
- Module 11 practice quiz20 min
12.Governance in special settings: windows, waqf, crowdfunding and ethics
- Windows, waqf, crowdfunding and the ethics framework (FAS 40; GS 13, 14, 16)45 min
- Case study: an integrated Shari'ah governance review30 min
- Module 12 presentation15 min
- Module 12 practice quiz20 min
- Course summary and preparing for the final exam20 min