The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in the 28^h  meeting of its Governance and Ethics Board (AGEB / the board) approved the issuance of the exposure draft of the Standard on Auditing (SOA) 1 “Framework of Auditing” .

The objective of this revised standard is to provide a comprehensive framework for an auditor for performance of an audit of the financial statements of an institution or entity that reports in line, and complies, with Shari’ah principles and rules.

Mr. Farrukh Raza, chairman of AGEB at this occasion stated that: “I would like to thank the board and the members of Professional Auditing Standards Committee (PASC) for their outstanding efforts and dedication to the development of this standard”. He added that: “Considering significant developments in the auditing profession in last several years, an auditing standards revision project was initiated by AGEB to align the AAOIFI’s auditing standards with the current established practices of auditing for Islamic financial institutions, and the updated AAOIFI strategy for auditing standards setting. This standard is the first work product of the project”.

Mr. Hamad A. Al Oqab, chairman of AAOIFI Accounting Board (AAB) stated that: “Issuing auditing standards for Islamic financial institutions has been a part of the AAOIFI’s standard setting mandate since its inception. The approach was to develop a limited set of standards focusing only on the value addition and the specific aspects of auditing related to Shari’ah principles and rules and the specific business models and structures related to Islamic finance, I am glad that AAOIFI initiated the revision of auditing standards project and I am looking forward for the issuance of the remaining work products in due course”.

On this occasion, Mr. Omar Mustafa Ansari, Secretary General, AAOIFI stated that “I would like to extend my thanks and appreciation to all the experts for their efforts and contribution in the standard development process”. He added that “It’s a pleasure to announce the issuance of the exposure draft of the standard and I am looking forward towards valuable public comments”.

The public hearings for the standard will be held in the upcoming months in different parts of the world and / or on virtual basis to obtain industry feedback on the exposure draft in addition to comments in writing. Comments on the exposure draft are welcomed and should be directed no later than 31 March 2023 to governance@aaoifi.com. All comments and suggestions of the public hearings and written comments are presented to AGEB to discuss and to make necessary changes before issuing the final standard.

the exposure draft of the Standard on Auditing (SOA) 1 “Framework of Auditing” can be accessed by CLICKING HERE