Challenges in Recruiting Specialized Internal Auditors: Case Study Evidence of Islamic Financial Institution in Malaysia
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 1
Abstract
The internal audit function within an organization is no longer confined to the conventional compliance or operational audit. Specialized internal audit has emerged with the rise of certain service sectors including the Islamic financial institutions (IFIs). This specialised audit known as shariah audit is purported to safeguard the welfare of faith-based investors by ensuring a shariah compliant IFIs. Effective shariah audit requires competent internal auditors. Shortage in qualified and competent internal auditors to conduct effective shariah audit has however become one of the challenges for the IFIs. This paper explores these challenges through the perspective of practitioners within the IFI in Malaysia as one of the active players in providing the Islamic banking products and services to the Muslims’ users. This study adopted a multiple case-study to gather the data on challenges of shariah auditors of Islamic bank to perform their duty. Interview was conducted with a representative from the IFIs regulator and 30 internal auditors from four types of IFIs directly involved in conducting the shariah audit. There is currently a lack of standard operating procedure on the recruitment of specialized internal auditors in the IFI from a mixed practice on the composition of specialized internal auditors recruited by the IFIs with most of them being accounting qualified candidates. The IFIs also prefer to hire either internally or externally acquired experienced internal auditors. The main challenge in hiring this type of internal auditors is to have professionals with vast knowledge, skills and experiences in accounting, auditing and shariah related matters. This study contributes to the importance of competency practice among Islamic banking personnel. It also contributes to the management policy in the recruitment or training of shariah auditing professionals of IFIs in Malaysia. This empirical research contributes to the importance of competency practice among Islamic banking personnel besides management policy in the recruitment or training of shariah auditing professionals of IFIs in Malaysia.
Authors and Affiliations
Nor Aishah Mohd Ali
Keywords
Related Articles
- EP ID EP527688
- DOI 10.6007/IJARBSS/v8-i1/3781
- Views 91
- Downloads 0
Influence of Environmental Scanning on Performance of HIV and AIDS Interventions Managed by Non-Governmental Organizations in Nyanza Region
Interventions on Human Immunodeficiency Virus and Acquired Immune-Deficiency Syndrome (HIV and AIDS) face major challenges of resource constraints, relevance, efficiency and because of inadequate environmental scanning d...
Confirmatory Factor Analysis of Interpersonal Skills of Youth’s Scale
Although it is known that interpersonal skills are essential for personal development, but there is still debates how to measure that skills, especially for youth. This study was conducted to develop a questionnaires to...
A Comparison between Neural Networks and GARCH Models in Exchange Rate Forecasting
Modeling and forecasting of dynamics nominal exchange rate has long been a focus of financial and economic research. Artificial Intelligence (IA) modeling has recently attracted much attention as a new technique in econo...
A Conceptual Framework of Tourism Development Perceived Impact, Quality of Life and Support for Tourism Further Development: A Case of Malaysia Homestay Experience Programme (MHEP)
Malaysia Homestay Experience Programme (MHEP) served as the platform for local communities to participate and gain benefit from the tourism industry. The local communities’ perception of the tourism development impact is...
The Effect of Marketing Strategy on Maximizing the Performance of an Organization: Sustainable Competitive Advantage as a Mediate Variable: Empirical Study on Small and Medium Companies in Jordan
The aim of this study is for finding the effect of marketing strategy on maximizing the organization performance where the sustainable of competitive advantage as a mediate variable, the study was applied on the small an...