...An Internship Report On Audit Procedure of UHY Syful Shamsul Alam & Co. and A Comparative Analysis on IFRS (IAS) and AAOIFI on Financial Reporting Issues Department of Finance Faculty of Business Studies University of Dhaka An Internship Report On Audit Procedure of UHY Syful Shamsul Alam & Co. and A Comparative Analysis on IFRS (IAS) and AAOIFI on Financial Reporting Issues (As partial fulfillment of BBA Program) Submitted To Department of Finance University of Dhaka Supervised By Taher Jamil Lecturer Department of Finance University of Dhaka Submitted By Md. Rased Mosarraf ID: 16-062 Department of Finance University of Dhaka Date of Submission: May 22, 2014. Letter of Transmittal May 22, 2014. Taher Jamil Lecturer Department of Finance University of Dhaka Subject: Submission of internship report. Dear Sir, I have the pleasure to submit an Internship Report after completing a successful three month Internship attachment at a CA firm named “UHY Syful Shamsul Alam & Co.” on “Audit Procedure of UHY Syful Shamsul Alam& Co. and A Comparative Analysis on IFRS (IAS) and AAOIFI on Financial Reporting Issues”. I have concentrated my best effort to achieve the objectives of the report and hope that my endeavor will serve the purpose. The practical knowledge and experience gathered during report preparation will immeasurably help in my future professional life. I will be obliged if you kindly approved this endeavor...
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...[pic] Universitas Islam Indonesia Faculty of Economics INTERNATIONAL PROGRAM Syllabus Accounting for Islamic Banking Lecturer: Muhammad Akhyar Adnan, PhD, MBA., Ak. E-mail: akhyar@fe.uii.ac.id Phone: +62 274 881546 Credit (SKS): 3 Prerequisites: Intermediate Accounting, or at least an Introduction to Accounting in conventional perspective. It is preferable that students have passed accounting theory. Consultation times: By appointment Class Duration Two and a half hours per week for 12 weeks One to one and a half hours of the time is used for lecture or seminar and the remainder for tutorial or small group work activities. Subject Overview Since the mid 20th century, there has been a serious effort within Muslim societies to apply fully the Islamic tenets in their daily lives. This includes the application of Islamic economic teachings, as discussed variously in many verses of the holy Qur’an, in the ahadith, as well as exemplified in the real life of prophet Muhammad (M.P.B.U.H) and his companions. The most vivid example of this effort can be seen in the establishment of Islamic financial institutions such as banks, insurance companies, capital markets, mutual funds and so forth, both in Muslim and non-Muslim countries. The proliferation and growth of Islamic banks particularly, both nationally and internationally, has been remarkable. Islamic banks now stand side by side with their conventional counterparts in more...
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...doi:10.5539/ijbm.v7n18p49 Accepted: June 20, 2012 Online Published: September 16, 2012 URL: http://dx.doi.org/10.5539/ijbm.v7n18p49 Abstract Islamic banks use finance leases as a mode of financing, after incorporating major alterations in the structure of the contract in order to meet Shariah principles. In this case, the contract is called ‘Ijarah Muntahia Bittamleek’. As different structures might lead to different accounting results, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) issued Financial Accounting Standards to tackle the accounting treatment for such transactions. The paper criticised the accounting treatment offered by AAOIFI for violating the matching principle and lacking faithful representation. Suggested amendments for accounting treatments are also proposed. Keywords: Ijarah, lease, Islamic accounting, Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), financial reporting 1. Introduction Ijarah, also referred to as ‘Islamic lease’, is a contract where one party transfers the usufruct (Note 1) of an item to another party for a specified period, in exchange for a specified consideration (Asian-Oceanian...
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...Introduction Unlike conventional economics which focuses on profit maximization, the Islamic economic system aims at the “study of human falah achieved by organising the resources of earth on the basis of cooperation and participation (Akram Khan, p.55).” In other words, the Islamic economic system aims at attaining Allah s.w.t’s pleasure, while pursuing economic activities within the boundaries of the Islamic shariah. The Islamic shariah puts a heavy importance on the well being of the community and social justice. Thus, this also means the prohibition of interest. The prohibition of interest is one of the main factors that put Islamic economics in distance with the conventional economics. Because of this difference in nature, Islamic Financial Institutions (IFIs) have different types of contracts as practiced by conventional financial institutions. One of the types of contracts entered by IFIs is the Ijarah contract. Ijarah contracts are also known as Islamic leasing. Basically, this study is done in order to understand more the nature of leasing according to Islamic principles, and at the same time, the differences of ijarah with conventional leasing. In addition, this study also aims to identify the types of ijarah practiced by IFIs in Malaysia and also to see how Malaysian IFIs disclosed their ijarah financing in comparison to their counterparts in Bahrain IFIs. This is because as one ummah, it is important to have a standardized standard that is Shariah compliant...
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...involving speculation, Depositors enter into Mudaraba and Musharka contracts where interest is replaced through profit/loss sharing scheme. The credibility of an Islamic bank is assessed by the Sharia Supervisory Boards (In house religious advisers) who provide audits and issue a report to the stakeholders on whether the organization has adhered to Islamic principles. Some of the Islamic banks adopt the recommendations of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Discussion Emphasis on Social Reporting Since establishments of Islamic banks, social welfare has been given priority, most banks set this as one of their main objectives. Unlike western society in Islam, Religion clearly provides the rights and obligations of individuals and organizations with respect to others and is not subject to change. Given below are some factors which has been considered as points that should be disclosed in an Islamic bank some of them are required by AAOIFI as well. In terms of accountability social responsibility and justice in Islam everyone is accountable to God, and the Quran and sunnah followed in Islam mentions that accepting God includes recognizing the need of society and there by being accountable to society, In terms of a business being accountable to society means the...
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...accounting standard particularly for Islamic banks alone worldwide. In addition to this, it is sadly to say the fact that AAOIFI has no power to enforce its standards due to IFRS and IAS has been globally accepted worldwide by most of the countries. It is argued that Islamic banks should have their own accounting standards as not all accounting treatment could be referred to IFRS as for example Islamic banks do not include interest in the transactions. According to the Karim (2001) there are three approaches to regulate Islamic banking namely by Islamic banking act, fiduciary law and laws that governs all banks. Therefore, accounting treatment of investment accounts would be affected due to the different approach adopted by each country. In addition, Islamic banks should develop accounting standards that emphasize on their own unique characteristics of contracts such as Shariah Compliance Act in order to guide the operation of Islamic banks. It can be said that because there was a market pressure for compliance, Islamic banks in Bahrain and Sudan have been required by supervisory authorities to comply with AAOIFI while on the other hand country like Malaysia is only voluntarily use AAOIFI accounting standards. Hence, all the Islamic banks must make the adoption of AAOIFI as a requirement. In our opinion, we strongly agree that Islamic banks should follow AAOIFI accounting standards so the financial statements can be prepared as comparable, transparent, relevant and reliable to...
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...(Susela, 1999) said the development of accounting theories is are affected by several factors including political and economic interests of certain people or group in community. Therefore, it can be also called if the accounting is a significant tool to illustrate the interests and perspectives of the various stakeholders. Islamic industry of finance has obtained tremendous growth in last few years, both in number of assets that manage by industry and in the diversity of financial products. A global system that can rule the industry will become significantly important for the Islamic finance sector in order to meet the needs of continued growth (Vinnicombe, 2012). Harmonization of Shari’a accounting standards has continue to be made by the AAOIFI as it is also done by the International Accounting Standards Board (IASB) for conventional accounting harmonization. In its development, financial reporting in Islamic accounting adds some different additional reports than conventional accounting to accommodate the unique transactions of Islamic economics. In that regard, this paper have objective to explore the main important values of Shari’a accounting and reporting standards of Islamic Accounting and try to find the answers of Islamic accounting positions among the process of international accounting standards harmonization. 2. Introduction According to (Susela, 1999) said the development of accounting theories is are affected by several factors including political and economic...
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...Anthropological and Accounting Knowledge in Islamic Banking and Finance: Rethinking Critical Accounts Author(s): Bill Maurer Reviewed work(s): Source: The Journal of the Royal Anthropological Institute, Vol. 8, No. 4 (Dec., 2002), pp. 645667 Published by: Royal Anthropological Institute of Great Britain and Ireland Stable URL: http://www.jstor.org/stable/3134937 . Accessed: 27/02/2012 02:27 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Royal Anthropological Institute of Great Britain and Ireland is collaborating with JSTOR to digitize, preserve and extend access to The Journal of the Royal Anthropological Institute. http://www.jstor.org ANTHROPOLOGICAL AND ACCOUNTING KNOWLEDGE IN ISLAMIC BANKING AND FINANCE: RETHINKING CRITICAL ACCOUNTS BILL MAURER Universityof Californiaat Irvine Accounting for accounting demands renewed attention to the knowledge practices of the accounting profession and anthropological analysis. Using data and theory from Islamic accountancy in Indonesia and the global network...
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...Sukuk: General Review Challenges on Shariah-compliance & Accounting Implications Monsif MOUMNI Introduction The growth and popularity of the use of Islamic finance has been exceptional since the central bank of Bahrain issued the first sovereign sukuk in 2001. In fact, the size of the global Islamic finance market exceeds US$2 trillion. Although the sukuk market is still small compared to the conventional bond market, sukuk are considered as the most successful financial product among the Islamic financial institutions and also considered as one of the fastest industries in its growth in international financial landscape. Sukuk generally refers to Shariah-compliant bonds; the spread in a striking pace of sukuk in GCC1 and Muslim-majority countries in Asia has made from it a very important way for fund raising. Recently sukuk have also been attracting attention in non-Islamic countries in Europe, Asia, and Africa; for example in 2014, sovereign sukuk were issued by the United Kingdom, Hong Kong, Luxembourg, and South Africa (Lackmann, 2015). The main objective of this paper is to provide a panoramic picture describing the key elements characterizing sukuk from different perspectives combined. In this review we will first try to present the general context of sukuk i.e. the definition, types, and the basic structure of sukuk, and also to make a contrast of conventional bonds with sukuk to outline the main differences, and next we will discuss about controversy...
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...Journal of Financial Reporting and Accounting Insurance vs Takaful: identical sides of a coin? Hairul Suhaimi Nahar Downloaded by ZHONGNAN UNIVERSITY OF ECONOMICS AND LAW At 10:31 08 December 2015 (PT) Article information: To cite this document: Hairul Suhaimi Nahar , (2015),"Insurance vs Takaful: identical sides of a coin?", Journal of Financial Reporting and Accounting, Vol. 13 Iss 2 pp. 247 - 266 Permanent link to this document: http://dx.doi.org/10.1108/JFRA-02-2015-0029 Downloaded on: 08 December 2015, At: 10:31 (PT) References: this document contains references to 66 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 248 times since 2015* Users who downloaded this article also downloaded: Mohamed Sherif, Nor Azlina Shaairi, (2013),"Determinants of demand on family Takaful in Malaysia", Journal of Islamic Accounting and Business Research, Vol. 4 Iss 1 pp. 26-50 http:// dx.doi.org/10.1108/17590811311314276 Khalid Al-Amri, (2015),"Takaful insurance efficiency in the GCC countries", Humanomics, Vol. 31 Iss 3 pp. 344-353 http://dx.doi.org/10.1108/H-05-2014-0039 Nor Aziah Abu Kasim, (2012),"Disclosure of Shariah compliance by Malaysian takaful companies", Journal of Islamic Accounting and Business Research, Vol. 3 Iss 1 pp. 20-38 http:// dx.doi.org/10.1108/17590811211216041 Access to this document was granted through an Emerald subscription provided by emeraldsrm:509129 [] For...
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...ASSIGNMENT#1 Submitted By: Saadia 1. Accounting and Auditing Organization for Islamic financial institution (AAOIFI) The AAOIFI is a non-profit organization that focuses mainly on the area of accounting and auditing for Islamic financial institutions. While recognizing the need for standards, AAOIFI was established on February 1990 in Algeria and was registered on March 1991 in the kingdom of Bahrain. The organization is supported by 200 institution members from 45 countries across the global. The AAOIFI is one of prominent Islamic agency that attempts to install accounting and auditing standard for Islamic financial industry. The main object is to develop and disseminate accounting and auditing thought relevant to Islamic financial institutions and their applications. Its tasks include holding seminars, publishing periodicals, newsletters, commissioning research and prepare, promulgate, interpret and review, the accounting and auditing standards for Islamic financial institutions. Its notable efforts are to inform and encourage banking supervisors around the world to adopt its standard as the benchmark for Islamic financial institutions in their countries. These attempts to improve the transparency and comparability of the financial reporting of Islamic financial institutions are bearing fruit. The AAOIFI’s standard has been applied in various countries such as Bahrain and Sudan which require Islamic Banks in their countries to follow AAOIFI’s standards. In Qatar and Saudi...
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...Malaysian requirements in providing their products. Page no Abstract 2 Introduction 4 Literature review 5 Methodology 7 Findings 7 Conclusion 13 1.0 INTRODUCTION Financial Accounting Organization for Islamic Banks and Financial Institutions is known as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). It was established in 1991 (AAOIFI, 2007, p.8). AAOIFI standards are drawn from Islamic teaching. The standards free from three important concepts that are used in conventional institutions which are interest, ambiguity and gambling. These standards help investors or depositors especially among Muslims to invest or deposit their funds in shariah compliance institutions. AAOIFI standards are the best in terms of Islamic shariah principles. Islamic finance is becoming more popular even with non-Muslim investors. Today, Islamic banks are operating in more than 50 countries for example Bahrain, France,...
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...investor. A proper standard framework for Shariah Compliance Audit is essential to ensure the harmonization of Shariah practice in Islamic Financial Institutions. The development of Shariah audit programme is also important as to ensure the procedures of each product in Islamic Financial Institutions are being followed. So this shows that Shariah Compliance Audit Framework and Audit Programme are important for Islamic Financial Institutions specifically in Islamic Banking and Takaful Institutions which are responsible in Shariah Non-Compliance. A number of Shariah auditing guidelines have been set out both by domestic authorities such as Bank Negara Malaysia (BNM), Malaysia’s central bank, and international organizations such as AAOIFI. Although AAOIFI uses the term ‘Internal Shariah Review’ for substitute of Shariah audit but its...
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... What are the growth prospects of Islamic banking in Oman? What kind of human resource requirements does the Oman industry have, now and in the near future? About Mr. Sohaib Umar: Sohaib has nearly two decades of industry experience - both in conventional and Islamic finance. He is currently working as Executive Manager with Ernst & Young's MENA Islamic Financial Services Advisory in Bahrain. He advises Islamic financial institutions on governance structures, strategy, operating model and internal organization. He also advises central banks and was recently engaged by the Central Bank of Oman to assist in preparing Islamic banking regulatory framework for the Oman market. Sohaib works closely with standard setting bodies such as AAOIFI. He started his career as a broker in 1994 and worked for local and multinational brokerage houses in Pakistan and Hong Kong for eight years before switching to venture capital and private equity in 2002. He joined Ernst & Young in 2009. He is MBA (finance) and CFA and also completed a one-year post graduate diploma in Islamic Banking and Insurance from Shaikh Taqi Usmani's Center for Islamic Economics, Karachi. To join the Teleconference session: - To follow this link https://trmarkets.webex.com/trmarkets/onstage/g.php?d=733508290&t=a - Once you have accessed this link it would require from you your full name, email...
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...IIUM Journal of Economics and Management 11, no.1 (2003): © 2003 by The International Islamic University Malaysia ETHICS IN ACCOUNTING EDUCATION: CONTRIBUTION OF THE ISLAMIC PRINCIPLE OF MAêLAîAH Abdul Rahim Abdul Rahman Assistant Professor, Department of Accounting, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia. (e-mail: abdulrahim@iiu.edu.my) ABSTRACT There is a growing concern over the apparently low moral standards of some accountants and an increasing number of academics who suggest that the education system should bear some of the blame. Ethical components in accounting education have been found to be insufficient and there is a lack of emphasis on humanizing accountants. The objective of this paper is firstly to address the importance of ethics in accounting education and evaluate the development of literature in this area. Secondly, the paper argues for the direction of accounting education to focus on religious ethical development and values in developing accounting ethics. The paper argues that the Islamic worldview and ethics perspective can provide some insights into the process of developing a more humanized and ethical accountant. This paper proposes the Islamic legal principle of ma§laúah as an ethical filtering mechanism to be taught as part of the ethical accounting education process. This is aimed at providing awareness to accounting students and...
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