Auditing in Islamic Perspective and Auditing as Practiced in some selected Islamic Banks Operating in Bangladesh

Abstract

The study is on Auditing in Islamic perspective and auditing as practiced in some selected Islamic banks operating in Bangladesh. The study was conducted on total number of 5 Islamic banks operating in Bangladesh. The study was based on primary data, collected by interview method on the basis of a structured questionnaire. The main findings of the study are: i) identifying objectives and principles of Islamic auditing, ii) analysing the procedures of conducting auditing in the selected banks, iii) focusing on the major responsibilities and role of an auditor in the eye of Islam, iv) identifying qualities of an auditor in the eye of Islam such as righteousness, trustworthiness, professional behaviour, fairness, proficiency and efficiency, honesty and confidentiality etc., v) identifying major problems involved in conducting Islamic auditing in the selected banks are reported as: auditors specially external are not very much familiar with rules and regulation of Sharia Council, the bank authority disagree that auditors (external) are quite independent body, the concerned management feel discouraged to help the auditors by providing necessary information and data as well as document, non-standardization of Sharia compliance and regulation for Islamic finance. Not well equipped with knowledge of Sharia Council on the part of the employees, accounting systems and procedure are not fully in compliance with Islamic Sharia, vi) The probable measures to overcome the problems are identified as : proper implementation of accounting systems as permitted by Islamic Sharia, proper training to the accounting personnel regarding knowledge of Islamic Sharia, supplying the auditors necessary information and data willingly by the Accounts personnel, recognizing purity of transaction, proper standardization of Sharia Council rules and regulations etc.

IIUC Studies Vol.9 December 2012: 293-306