FOR IMMEDIATE RELEASE
27 SEPTEMBER 2023
MIA LAUNCHES WHITE PAPER ON SHARIAH AUDIT TO ENHANCE SHARIAH GOVERNANCE AND STRENGTHEN MALAYSIA’S LEAD IN ISLAMIC FINANCE
As part of its advocacy on Islamic finance, the Malaysian Institute of Accountants (MIA) recently published a White Paper on Shariah Audit (White Paper) in collaboration with Universiti Sains Islam Malaysia (USIM).
This White Paper is intended to help enhance Shariah governance and strengthen Malaysia’s global leadership in Islamic finance, and is aligned with MIA’s nation building purpose. “Shariah governance is one of the key areasfor MIA’s advocacy and Malaysia’s globally competitive Islamic finance industry, as spearheaded by the MIA Islamic Finance Committee. Given that Shariah regulations and compliance are a competitive edge in growing and capitalising on Islamic markets, it is imperative to ensure consistent Shariah compliance for the issuance of Islamic finance services and products, particularly through the adequate implementation of Shariah governance structures and Shariah audit practices,” stated Encik Mohd Muazzam Mohamed, Chairman of the MIA Islamic Finance Committee, and a leading practitioner in the Islamic finance sector at the launch of the White Paper.
In essence, the White Paper emphasises the importance of Shariah audit practices and governance structure in attaining Shariah compliance. It also provides an overview of the diverse regulations and current practices as well as issues and policy recommendations relating to Shariah audit in Islamic financial institutions, Islamic capital market, Islamic cooperatives, public trust entities and other Islamic institutions such as state Islamic religious councils.
Based on a mix of primary and secondary data, the White Paper derives analysis of the current challenges in implementing Shariah audit practices from roundtable sessions and the deliberations of a Shariah Audit Working Group comprising industry experts and regulators. “The White Paper has gone through a vigorous review process by a Working Group that is represented by regulatory bodies including Bank Negara Malaysia and the Securities Commission,” added Encik Muazzam.
The White Paper identifies two key challenges to improving Shariah audits. One, the lack of defined scope for Shariah audit. Two, the lack of required talent with the requisite skill and knowledge to perform an effective Shariah audit. To tackle these issues, the White Paper proposes the issuance of a Roadmap and Best Practice Guides that address talent management and professional development for Shariah auditors as well as audit coverage respectively.
The White Paper is one of the MIA’s latest strategic collaborations in advancing its Islamic finance strategy. As a member body of the International Federation of Accountants (IFAC), MIA has worked with IFAC to manage a series of initiatives on Islamic finance, including holding joint focus group discussions and publishing a series of articles on facilitating UNSDGs with Islamic finance. Previously, MIA also worked together with the Malaysian Accountancy Research and Education Foundation (MAREF) and various stakeholders to produce a textbook entitled “Accounting for Islamic Finance”, which focuses on applying Malaysian Financial Reporting Standards (MFRS) for Islamic finance transactions within the Islamic finance sector.
The White Paper was launched at the Audit Committee Conference 2023, a joint professional development platform of the MIA and the Institute of Internal Auditors Malaysia (IIA Malaysia) that focuses on upskilling audit committees as champions of corporate governance. Attesting to the relevance of the theme of Audit Committees: Catalysts of Change, the Audit Committee Conference drew 150 registered participants.
In his keynote address, Datuk Bazlan Osman, MIA President remarked: “MIA and IIA Malaysia have been collaborating for several years on this high-level platform that strives to develop and strengthen Audit Committees as the anchor of good corporate governance in organisations. The work of Audit Committees is essential in driving organisational resilience and business sustainability, and this in turn supports sustainable nation building.”
“Audit committees do play a crucial role as catalysts of change. The role of audit committees, as part of those charged with governance (TCWG), is not limited to ensuring compliance. Rather, your scope and impact are much broader and deeper, being centred on enabling organisations to manage risks and respond with agility to emerging opportunities and challenges,” he emphasised.
Click HERE to download the White Paper.
NOTE TO EDITOR:
About the Malaysian Institute of Accountants (MIA)
Established under the Accountants Act 1967, MIA is the national accountancy body that regulate, develops, supports and enhances the integrity, status and interests of the profession in Malaysia. MIA accords the Chartered Accountant Malaysia or “C.A. (M)” designation. Working closely alongside businesses, MIA connects its membership to a wide range of information resources, events, professional development and networking opportunities. Presently, there are more than 37,500 members making their strides in businesses across all industries in Malaysia and around the world.
MIA’s international outlook and connections are reflected in its membership of regional and international professional organisations such as the International Federation of Accountants (IFAC) and the ASEAN Federation of Accountants (AFA). For more information on MIA, visit www.mia.org.my
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