Shariah Audit & Compliance
Independent assurance that Shariah rulings are followed in practice.
What This Service Covers
Approving a product is only the start. A Shariah audit checks that what was approved is what actually happens, in contracts, systems, accounts and day-to-day decisions. We identify gaps, explain the risk, and help you fix them.
We can carry out the audit for you, support your internal Shariah audit team, or help you build the function from the ground up.
Who It Is For
- Islamic banks and Islamic banking windows
- Takaful operators, Islamic funds and modarabas
- Shariah-compliant companies
- Institutions preparing for a regulatory review or inspection
What We Deliver
- Shariah gap assessment of policies, products and processes
- Periodic Shariah audit, as an external provider or alongside your internal team
- Review of contracts, transactions and accounting treatment
- Testing of samples of executed transactions
- Review of Shariah non-compliance risk and the treatment of any non-compliant income
- Audit report with findings, risk ratings and agreed actions
- Setting up or improving an internal Shariah review function
How It Works
Plan
We agree the scope, period and areas to be covered.
Review
We study policies, product documents and process flows.
Test
We test a sample of real transactions from start to finish.
Report
We share our findings, risk ratings and recommended actions.
Follow-up
We check that agreed actions have been completed.
Frequently Asked Questions
What is the difference between a gap assessment and an audit?
A gap assessment compares your current set-up with Shariah requirements and good practice, and is a good first step. An audit goes further and tests real transactions to confirm that rulings are followed.
Can you support our internal Shariah audit team?
Yes. We can work alongside your team, provide specialist reviewers, or train your staff in audit methodology.
How often should a Shariah audit take place?
Most institutions audit at least once a year, with higher-risk areas reviewed more often. We can help you set a risk-based plan.