1) Recognize specific economic statements auditing concepts and procedures which can be applied in determining if an Islamic bank have been Shari'a compliant during a provided financial revealing period?
* Ethnic differences across countries and regions of the world have difficult efforts to produce a common set of international accounting and auditing standards. 5. Islam allows the fact that accounting is actually a social development and on its own constructs cultural reality but this fact which the accounting constructs need to conform to the dictates of Islamic opinion. * Many Islamic banks have their annual financial statements audited simply by an independent accounting firm. * An SSB (shari'a supervisory board) can be described as model that determines if an Islamic bank provides complied with shari'a. It is composed of a minimum of several Islamic religious scholars who have are in addition to the given financial institution. * A great SSB testimonials a given bank's financial assertions and root transactions, accounting records, business contracts and other relationships at the end of each 12 months to determine the fact that constitution offers complied with shari'a during that period. * An additional shari'a examine model ends in a financial declaration audit survey that contains multiple references to shari'a. 5. Under this kind of shari'a audit model, the shari'a related procedures performed during a great entity's self-employed audit properly provide a second layer of assurance which the given entity has complied with relevant Islamic spiritual principles during the year under review. * The key shari'a related procedures incorporated into a financial affirmation audit happen to be performed by simply one or more Islamic religious scholars independent of the offered audit client.
Would these concepts and procedures be used differently in shari'a complying audits in comparison to conventional financial statement audits? Explain. These kinds of concepts and procedures will be applied in a different way in shari'a compliance...