Internal Sharia Audit

Our internal Sharia audit practice engages in reviewing all transactions, products, & financial statements on a regular basis to ensure compliance with Sharia directives as laid down by your Sharia Board. Our Sharia auditors help measure your Sharia compliance taking into account your overall Sharia non-compliance risk management framework, Sharia governance structure and pertinent regulatory requirements.

Our Approach

Our approach helps both the Sharia Board and the management understand pertinent non-compliance issues and enhance your existing Sharia risk infrastructure. The implementation of our execution methodology is based on three closely linked stages:

Step 1 – Sharia Audit Planning
Step 2 – Audit Fieldwork
Step 3 – Sharia Compliance Reporting

Illustration of our Sharia audit focus at various levels

  • Critical Component
  • Key Shari’a Considerations
  • Sharia Control
  • Background information on pertinent parties objectives, Sharia risk of applied modality, related documentation, input from compliance & legal, etc.
  • Financial
  • How top line revenue is generated, operating and process level income of the asset, results of non-permissible returns, etc.
  • Non- Compliance
  • Exposure to non-compliant venues, legal factors pushing outside the parameters of defied Islamic directives, lack of knowledge and management controls of Islamic investments.
  • Systems
  • Automated systems utilized within the in scope of processes and delivery versus manual controls.
  • Sharia Audit Technique Connection
  • Process flow and procedures that could be generated and leveraged to perform Sharia audit testing
  1. Sharia Review Summary
  2. Summary of scholars conclusions
  3. Categorized by Salient Process / Cycle
  4. Identified Shari’a Modality Risks
  5. Linkage to Shari’a Audit Program

Why choose Us?

We are a licensed Sharia advisory firm by the Central Bank of Bahrain and also apply International Standards of Quality Control (ISQC 1).

In the past 18 years we’ve audited banks, insurance firms, asset managers and fin-tech companies. We’ve applied Sharia auditing procedures pragmatically in ways which guarantee Sharia compliance today and in the long-term.

We are committed to maintaining our independency as per AAOIFI’s GSIFI No. 11 standard, giving you confidence in our decisions every time.

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