---
title: "What is Shariah audit? | IslamicOpenFinance™"
description: "An independent assessment of internal controls, risk management and overall Shariah compliance, usually by internal audit."
url: https://islamicopenfinance.com/glossary/shariah-audit/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Shariah governance](https://islamicopenfinance.com/glossary/#governance)

Shariah governance

# Shariah audit

An independent assessment of internal controls, risk management and overall Shariah compliance, usually by internal audit.

Shariah audit is a function that provides an independent assessment of the quality and effectiveness of an institution's internal control, risk management and governance processes, and of its overall compliance with Shariah, as Bank Negara Malaysia's policy describes it. It works from an audit plan and methodology and reports findings to the board and the Shariah committee. AAOIFI also has a governance standard on internal Shariah audit.

## Sources

- [Bank Negara Malaysia, Policy Document on Shariah Governance, 2019: Shariah audit](https://www.bnm.gov.my/documents/20124/761679/Shariah+Governance+Policy+Document+2019.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Shariah review** A regular compliance function that assesses whether an institution's operations follow Shariah requirements.](https://islamicopenfinance.com/glossary/shariah-review/) [**Shariah supervisory board** An independent panel of Shariah scholars that approves an institution's products and oversees its Shariah compliance.](https://islamicopenfinance.com/glossary/shariah-board/) [**Shariah governance system** The institutional arrangements through which an institution ensures independent oversight of its Shariah compliance.](https://islamicopenfinance.com/glossary/shariah-governance-system/)

**Shariah governance**

1. [Shariah supervisory board](https://islamicopenfinance.com/glossary/shariah-board/)
2. [Fatwa](https://islamicopenfinance.com/glossary/fatwa/)
3. [Shariah governance system](https://islamicopenfinance.com/glossary/shariah-governance-system/)
4. [Shariah review](https://islamicopenfinance.com/glossary/shariah-review/)
5. [Shariah non-compliance risk](https://islamicopenfinance.com/glossary/shariah-non-compliance-risk/)
6. [Purification of income](https://islamicopenfinance.com/glossary/purification/)
7. [Central Shariah board](https://islamicopenfinance.com/glossary/central-shariah-board/)
8. [Shariah compliance function](https://islamicopenfinance.com/glossary/shariah-compliance-function/)

[All 221 terms](https://islamicopenfinance.com/glossary/)