A Comparative Analysis between Shariah Audit and Shariah Review in Islamic Banks in Malaysia: Practitioners’ Perspective

This paper compares Shariah audit and Shariah review in Islamic banks in Malaysia based on reporting structure, independence, the scope of duties, technology used, guideline and methodology, coverage period, and officers’ qualification. The study employs a qualitative method by utilizing semi-structured interviews with nine (9) key industry players. Data gathered from a series of interviews have been transcripted and analyzed using Atlas.ti. This study uncovers that Shariah review and Shariah audit have apparent differences and play their roles as a second and third line of defense, respectively, that eventually could provide a stimulus to Shariah governance and strengthen market confidence. Keywords: Shariah audit, Shariah review, Islamic banks, qualitative method. eISSN: 2398-4287© 2020. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v5i14.220