ISSN: 2225-8329
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Shariah compliance is the industry's core value proposition and the cornerstone of the worldwide Islamic financial sector. To ensure compliance and uphold the legitimacy of Islamic finance among stakeholders, a number of efforts are being implemented in various countries. One such approach that offers greater independence than others in providing Shariah assurance is external Shariah audit. External Shariah auditors of IFIs carry out financial audit tests in addition to testing for adherence to the Shariah Advisory Council's (SAC) norms and regulations for Islamic Financial Institutions (IFIs). The Malaysian Accounting Standards Board (MASB) anticipates creating unique standards for Malaysian IFI in the future. This study aim to examine the need of adoption accounting base in external Shariah audit report. This study is a conceptual paper which base on the discussion of literature review and library research. The research offers practical implication to authority body in accounting to formulate special accounting standard for external Shariah audit report among IFI.
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