Exploring shariah audit implementation for the state Islamic religious council in Malaysia

This study explores the implementation of Shariah auditing at the State Islamic Religious Council (SIRC). This paper focuses on four main themes: issues and challenges, effectiveness of Shariah audit, Shariah audit implementation, and competency of Shariah auditors. The findings of this study indicate that SIRCs have yet to develop Shariah Governance Framework and do not yet have Shariah auditing policies and procedures; Shariah audit has not yet been comprehensively implemented in SIRCs, while they have internal auditors, the existing internal auditors lack expertise in conducting Shariah audits; and, most importantly, the understanding and acceptance of Shariah audit by the board of directors and management should be taken seriously. The practical implications of this study are that it offers an overview of the challenges in implementing Shariah audits to policymakers and practitioners for the future development of Shariah auditing practices among SIRCs. This is part of a comprehensive study of the difficulties of Shariah auditing implementation in SIRCs, to the best of the author's knowledge. Shariah auditing should be established as a necessary aspect of the governance structure of the SIRCs. This is essential not only for instilling the public's confidence and trust in the sanctity of the SIRCs' operations but also for receiving the blessings of Allah SWT. Nonconformance to Shariah can cause the loss of blessings from Allah SWT. It will damage the good reputation of the SIRCs. Eventually, conducting activities or transactions that do not comply with Shariah can lead to the generation of income that is not halal