26 December 2024

PR/26/2024

The Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI) Governance and Ethics Board (AGEB / the board) has officially issued the exposure draft of the standard on auditing and assurance (SOAA) on “Auditing Requirements for Assessing Compliance with Shari’ah Principles and Rules”.

The proposed standard prescribes the auditing requirements applicable to an auditor in respect of the consideration for Shari’ah principles and rules in an audit of financial statements of an Islamic financial institution (IFI / the institution) or another institution that operates in compliance, and reports in line, with Shari’ah principles and rules.

Mr. Farrukh Raza, Chairman of AGEB, stated: “We are pleased to proceed with the issuance of the exposure draft and eagerly anticipate receiving the industry’s feedback. Once issued, the public consultation process will commence, and comments will be compiled before suitable changes are incorporated.” He added: “I would like to express my sincere gratitude to the board and working group members for their efforts and unwavering dedication.”

The public hearings 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. Further details with respect to dates and venues will be announced via the AAOIFI website.

Comments on the exposure draft are welcomed and should be directed before 1 April 2025 to governance@aaoifi.com. All comments and suggestions of the public hearings and written comments are presented to AGEB for discussion and to make necessary changes before issuing the final standard.

The exposure drafts can be accessed on AAOIFI website: standard link