Suchergebnisse

External Sharī'ah Audit (ESA) is a control mechanism meant for formulating an objective view by an independent Sharī'ah audit team about the obligation of Islamic banks' (IBs) management, personnel and other divisions towards Sharī'ah compliance. This study principally aims to examine the relevancy of ESA and review committee in enhancing the level of Sharī'ah compliance quality and accountability of IBs in Bangladesh. The study examines data from 17 respondents obtained via semi‐structured interviews and secondary sources in library. This study establishes that Sharī'ah officers of IBs in Bangladesh are unable to perform audit functions properly which indicates the limitations of current Sharī'ah audit functions. The study discovers the need for an independent ESA for proper auditing of IBs' operations in Bangladesh with a view to Sharī'ah compliance. Thus, an ESA and review committee is imperative to enhance the quality of Sharī'ah compliance and ensure accountability of all divisions within IBs. This audit is to be provided either by Bangladesh Bank (BB), the central bank of the country or a third party such as Islamic chartered accountants' firms or Sharī'ah audit firms. The study would contribute to existing literature on the importance of ESA and its conditions in Bangladesh. The study also provides some instructions for global Islamic banking practice on the issues examined. The study contributes to agency, stakeholder and legitimacy theory via highlighting the inability of Sharī'ah auditors to perform their function independently and efficiently.