AAOIFI Issues Guidance Note (GN) No. 02 “Auditor’s Report”

AAOIFI’s  Professional Auditing Standards Committee (PASC)  issued Guidance Note No. 02  “Auditor’s Report” which was ratified by AAOIFI’s Governance and Ethics Board (AGEB).

AAOIFI Professional Auditing Standards Committee (PASC) Auditing Guidance Note (AGN) provides guidance on the form and content of the independent auditor’s report in line with the global best practices, as applicable to Islamic financial institutions and includes as an appendix thereto a specimen auditor’s report.

This AGN appropriately enhances the communicative value and relevance of the independent auditor’s report of an Islamic financial institution through proposed revisions to be in line with global best practice requirements. The independent auditor’s report is a regulatory requirement in jurisdictions adopting AAOIFI Auditing Standard for Islamic Financial Institutions (ASIFI).

This AGN supersedes the earlier PASC AGN No. 1 “Communication of key audit matters in the independent auditor’s report” issued on 04 January 2017, as amended later, as it provides more comprehensive guidance on the subject along with other matters to be reported in the auditor’s report in addition to the Key Audit Matters (KAMs).

The Chairman of PASC Mr. Ebrahim Sidat stated that “AAOIFI has initiated a comprehensive project of revision of all ASIFI. Awaiting the outcome of the same, the PASC decided to issue this AGN and suggested an illustrative auditor’s report, rather than making limited amendments to the ASIFI 2 “Auditor’s Report”.”

The Guidance Note can be accessed BY CLICKING HERE