Sharias Case free essay sample

Would these concepts and procedures be applied differently in shari’a compliance audits compared to conventional financial statement audits? Explain. These concepts and procedures would be applied differently in shari’a compliance audits compared to conventional financial statement audits because it will affect the SSB and other oversight bodies that are charged with making initial decisions on which economic ventures, contracts, transactions and other business practices are shari’a compliant. ) Do you believe that the proposal to merge shari’a compliance audits with financial statement audits is feasible? Yes, there are many arguments that support that this merge between shari’a compliance audits and financial statement audits is possible: the effectiveness of the shari’a compliance function is being undercut by the lack of formal training in auditing concepts and auditing methodologies on the part of the religious scholars principally respo nsible for that function. ) Do you agree with the assertion that accounting can lead to perceptions of reality? Explain. We will write a custom essay sample on Sharias Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In deciding whether to adopt a proposed accounting standard, should accounting rule making bodies consider whether that standard might induce socially irresponsible behavior on the part of economic decision makers? Islam accepts the fact that accounting is a social construction and itself constructs social reality but this social reality which the accounting constructs must conform to the dictates of Islamic belief. A rule making body issues authorative shari’a auditing standards for all Islamic banks and other Islamic businesses and it will be the most effective way to eliminate problems within the Islamic economy. The most effort to develop a body of consistent standards for shari’a audits has been undertaken by the accounting and auditing organization for Islamic financial institutions (AAOIFI). 4) Identify the key challenges that the big four firms will likely face in their efforts to establish a major presence in the Islamic banking industry. The role of the external auditor to Islamic financial institutions requires a different skill set and experience to that possessed by some accounting organizations. * Issuing a marketing brochure that identifies the wide range of professional services the firm could offer Islamic banks. * Meeting the needs of Islamic financial institutions across national boundaries. * Leading providers of professional accounting, auditing, and consulting services to the Islamic finance sector. * Hiring an Islamic religious scholar. * Offering shari’a audit services.