INTERNAL SHARIAH AUDITING (ISA) PRACTICES BASED ON RAHAMATAN LIL ALAMIN PRINCIPLE (RLAP)

Title: INTERNAL SHARIAH AUDITING (ISA) PRACTICES BASED ON RAHAMATAN LIL ALAMIN PRINCIPLE (RLAP)

Authors: BASSEM MOHAMMAD IBRAHIM MOSA ISMAIL

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research aims to define the desired competency of Internal Shariah auditing in order to achieve the main purpose of the research which is exploring Internal Shariah auditing practices through the Rahmatan Lil Al'amin Principle in Indonesian Islamic Bank. Moreover, determine their assurance and compliance for Shariah to implement Shariah Governance. This study qualitative research uses Phenomenological research is experienced from the perspective of the individual. It focuses on description more than explanation. The purpose is to identify the ways perception influences how people interact with what they encounter. Methods include interviews, conversations, participant observation and focus meetings. This can be done by having clear understanding on the concept, principles, objectives and approach on Shariah audit. Also, the study intends to assists standard regulatory bodies in determining appropriate enhancement program and certification requirements to be possessed by the internal auditors before they can conduct Shariah audits that are based on the Rahmatan lil alamin principle (RLAP). The findings of this research can conclude with the following. Firstly, Inserting RLAP in the ISA proficiency which is the aim of Shariah Allah SWT Subhanahu wa Ta'ala through Prophet Sallallahou Alayhe Wasallam (صلى الله عليه وسلم). Second, proposed new model for the competency and code of ethics for internal Shariah Auditing in Indonesia for assurance and compliance Shariah products which is from create efficient Shariah Governance framework as a standard in Indonesia for all Islamic Banks. The main contribution of this study to extends the literature, in addition the study hopes to assist standards regulatory bodies in setting up the relevant standards and audit program with regards to Shariah audit through the RLAP. Furthermore, outline the challenges of ISA and support with the new model could be included for Shariah Governance framework.

Keywords: Shariah, competency, Internal Shariah auditing (ISA), Shariah Governance (SG), Rahmatan lil alamin principle (RLAP).

Sources: http://repository.unair.ac.id/84166/