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Perceptions of shariah scholars on shariah audit in Malaysian takaful industry

Mohamad Puad, Noor Aimi and Abdullah, Nurdianawati Irwani and Shafii, Zurina (2019) Perceptions of shariah scholars on shariah audit in Malaysian takaful industry. International Journal of Islamic Economics and Finance Research, 2 (1). pp. 13-25. E-ISSN 2636 – 9419

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Takaful is shariah compliant insurance scheme which become an important component in the Islamic financial system in Malaysia. Takaful industry in Malaysia is relatively young compared to other sectors in the financial industry, but it has enjoyed robust growth. However, despite the robust growth, Takaful industry also continues to face several challenges such as ineffective governance practices. Ineffective governance practice will lead to the possibility of facing shariah risk and incident of shariah risk in their activities and operation. Shariah audit function is one of the component of governance that play a role in ensuring the takaful operator to have a sound and effective internal control system of shariah compliance. This study aim to examine the shariah scholars’ perception on current shariah audit process and scope particularly in Takaful industry. Semi-structured interviews was conducted with shariah scholars who are members of the Shariah boards in various Takaful Operators. The finding discovers that there are different points of view demonstrated by the Shariah scholars. This study may provide relevant guidelines for future development of shariah audit practices in Islamic financial institutions in achieving maqasid shariah.

Item Type: Article (Journal)
Additional Information: 3677/75914
Uncontrolled Keywords: Takaful ,shariah audit, shariah compliance, Malaysian takaful industry
Subjects: B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP173.75 Islam and economics
H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics
H Social Sciences > HG Finance > HG8719 Islamic Insurance Takaful
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Finance
Kulliyyah of Economics and Management Sciences
Depositing User: Associate Professor Dr. NURDIANAWATI IRWANI ABDULLAH
Date Deposited: 06 Nov 2019 20:36
Last Modified: 06 Nov 2019 20:36
URI: http://irep.iium.edu.my/id/eprint/75914

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