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Exam preparationPaidIslamic accounting and standards

Auditing Standards and Professional Ethics for Islamic Finance

ASIFI 1 to 6: audit objective and engagement terms, the auditor's report, Shari'ah compliance testing, fraud and error, external Shari'ah audit, and the AAOIFI Code of Ethics

Advanced · 10 hours · 17 lessons · Language: English and Arabic

USD 14

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ifSPACE provides independent preparation courses. ifSPACE is not AAOIFI, is not an AAOIFI-authorized training provider, and completing a preparation course does not confer any AAOIFI qualification. AAOIFI examinations are taken separately with AAOIFI.

The external auditor of an Islamic financial institution must form an opinion on financial statements that are prepared under Shari'ah as well as accounting standards, and stakeholders increasingly expect separate assurance on Shari'ah compliance itself. This course explains AAOIFI's auditing standards for Islamic financial institutions: the objective and principles of an audit (ASIFI 1) and the terms of the audit engagement (ASIFI 3), the auditor's report and modified opinions (ASIFI 2), testing for Shari'ah compliance by the external auditor (ASIFI 4), the auditor's responsibility for fraud and error (ASIFI 5) and the external Shari'ah audit (ASIFI 6). It ends with the AAOIFI Code of Ethics for Islamic Finance Professionals.

The course covers Part B (audit and assurance) and the ethics part of the AAOIFI CPAAGE syllabus. Each module has a reading, slides, study notes and a practice quiz. The course ends with a final exam.

This course is independent educational material written by ifSPACE in its own words. It does not reproduce AAOIFI texts and is not affiliated with AAOIFI.

What you will learn

  • Explain the objective, principles, scope and limitations of an audit of an Islamic financial institution
  • Identify the contents of an audit engagement letter and judge a request to change the engagement
  • Describe the elements of the auditor's report and choose between unmodified and modified opinions
  • Apply the external auditor's procedures for testing Shari'ah compliance and responding to fraud and error
  • Distinguish direct and attestation external Shari'ah audits and apply their criteria, procedures and reporting
  • Apply the Adl and Ihsaan equation, the six ethical virtues and the four ethics protocols to workplace dilemmas

Syllabus

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  1. 1.Objective, principles and terms of the audit (ASIFI 1 and 3)

    • Welcome to the courseFree preview1 min
    • What an audit of an Islamic financial institution is for, and how it is agreedFree preview30 min
    • Module 1 presentation15 min
    • Module 1 practice quiz15 min

  2. 2.The auditor's report (ASIFI 2)

    • Elements of the report and when the opinion is modified30 min
    • Module 2 presentation15 min
    • Module 2 practice quiz15 min

  3. 3.Shari'ah compliance testing, fraud and error (ASIFI 4 and 5)

    • The external auditor, the SSB's rulings and the risk of misstatement30 min
    • Module 3 presentation15 min
    • Module 3 practice quiz15 min

  4. 4.External Shari'ah audit (ASIFI 6)

    • Independent assurance on Shari'ah compliance30 min
    • Module 4 presentation15 min
    • Module 4 practice quiz15 min

  5. 5.The AAOIFI Code of Ethics for Islamic Finance Professionals

    • Adl, Ihsaan, ethical virtues and ethics protocols30 min
    • Module 5 presentation15 min
    • Module 5 practice quiz15 min
    • Course summary and next steps10 min