Audit and Inspection in Islamic Banking: Principles, Practices, and Shariah Compliance Frameworks (Islamic Social Finance)
Audit and Inspection in Islamic Banking: Principles, Practice and Shariah-Compliant Framework offers a comprehensive and authoritative exploration of how Islamic banks ensure transparency, accountability, and Shariah integrity in their operations. The book bridges classical Islamic jurisprudential principles with contemporary audit methodologies, making it an essential guide for professionals, students, regulators, and policymakers engaged in Islamic financial services.
Beginning with the foundations of Islamic commercial jurisprudence, the book clarifies the philosophical and legal roots of accountability (muhasabah), trust (amanah), and ethical responsibility in financial dealings. It then outlines the conceptual structure of Islamic banking, emphasizing how its asset-based nature, risk-sharing mechanisms, and contractual diversity create unique audit and inspection challenges distinctions from conventional finance.
The text provides a deep analysis of modern internal and external audit practices within Islamic banks, including risk-based auditing, governance audits, operational audits, and Shariah compliance reviews. Special emphasis is placed on the role of the Shariah Supervisory Board (SSB), its independence, responsibilities, reporting mechanisms, and interactions with management and regulators.
The book also examines the tools and techniques used in Islamic banking inspections-such as contract-level reviews, product audits, end-use verification, profit-distribution audits, and Zakat audits-while offering practical checklists to support auditors and inspectors. Case studies highlight common non-compliance findings, the root causes behind Shariah violations, and pathways for corrective action.
Further, the book addresses global regulatory standards issued by AAOIFI, IFSB, and central banks, highlighting how international best practices are implemented across jurisdictions. Emerging trends such as digital audits, fintech compliance, cybersecurity reviews, and the future of AI-enabled Shariah auditing are included to equip readers for tomorrow's challenges.
By integrating theory, applied practice, regulatory horizons, and ethical considerations, this book serves as a complete framework for understanding how Islamic banks uphold trust, discipline, and Shariah authenticity. It is a critical resource for ensuring that Islamic finance continues to grow with integrity, professionalism, and public confidence.
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