Auditing And Governance For Islamic Financial Institutions
Islamic financial institutions (IFIs), in particular Islamic banks have witnessed its revival around the 1970s following the first oil price shock (Grais & Pellegrini, 2006). Its comeback is mainly due to the introduction of innovative Islamic financial products and a demand by Muslim populations from financial services that adheres to their religious beliefs. In Malaysia, Islamic banking has been in existence for the past 30 years which start with the establishment of the Pilgrimage Fund, Bank Islam Malaysia Berhad and Bank Muamalat Malaysia Berhad. One of the main confidence features in Islamic financial services is the requirement to convey to stakeholders that their business is in conformity with religious beliefs. Due to that strong corporate governance arrangements based on Shariah principles is utmost important.