31 December 2025

Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI’s) Governance and Ethics Board (AGEB / the board) has officially issued SOAA 1 “Framework of Auditing” and SOAA 4 “Auditing Requirements for Assessing Compliance with Shari’ah Principles and Rules”, as a result of the auditing standards revision project, collectively constituting an improved and revised comprehensive framework for audit of Islamic financial institutions and other institutions following Shari’ah principles and rules.

SOAA 1 “Framework of Auditing” provides a comprehensive framework for an auditor for performance of an audit of the financial statements of an institution to be applied in compatibility of established practices of auditing (including, in particular, International Standards on Auditing (ISAs)). SOAA 4 “Auditing Requirements for Assessing Compliance with Shari’ah Principles and Rules” provides principle-based guidance on the responsibilities of an auditor to consider Shari’ah principles and rules in an audit of financial statements, particularly with regard to expressing an opinion on compliance with Shari’ah principles and rules.

The two standards, collectively, supersede the earlier SOAA 1 “Objectives and Principles of Auditing”, SOAA 2 “Auditor’s Report”, SOAA 3 “Terms of Audit Engagement”, SOAA 4 “Testing for Compliance with Shari’ah Rules and Principles by an External Auditor” and SOAA 5 “Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements” which were identified for revision and improvement as a result of the auditing standards revision project initiated by the board.

On this occasion, Mr. Farrukh Raza, chairman of AGEB, stated: “By introducing a coherent and comprehensive framework that aligns with internationally recognised auditing practices while preserving the distinct requirements of Shari’ah principles and rules, we are equipping the industry with standards that are both rigorous and practical. These revised standards reinforce confidence, enhance consistency across jurisdictions and support the continued development of a sound and trusted Islamic finance ecosystem.” He further expressed: “I would like to express my sincere appreciation to the members of the board, the members of the AAOIFI Accounting Board, the members of the Auditing and Assurance Standards Committee and AAOIFI secretariat team for their dedication and invaluable contributions throughout this revision project.”

Mr. Omar Mustafa Ansari, secretary general of AAOIFI, stated: “The issuance of these standards marks a significant milestone of the auditing standards revision project. We anticipate an encouraging response from the industry on the comprehensive framework. In due course, we aim to cement this effort with development of additional guidance in the form of guidance note(s) and pronouncements.”

The standards can be accessed on AAOIFI website: Link