Overview

This module aims to provide students with the tools to evaluate and apply the key aspects of Islamic Accounting, Auditing and Governance, and assess its importance as a foundation of Islamic banking and finance.

Indicative Content:

• Introduction to Islamic Finance and Islamic Accounting • Objectives, concepts, and disclosure of financial accounting for Islamic Banks • Accounting recognition and measurement concepts for Islamic Banks • Introduction to the Accounting and Auditing Organization for Islamic Financial Institutions • General disclosures in the financial statements • Accounting for the different nominate contracts • Islamic Governance • Islamic Auditing • Ethics for Islamic Finance Professionals

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.

-good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.

-excellent -A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

-another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Analyse the role, responsibilities, and duties of the Shari’ah supervisory board and the Shari’ah Reviewers in Islamic financial institutions

• Apply the comparative differences in the accounting treatments of nominate contracts under International Financial Reporting Standards and AAOIFI accounting standards.

• Describe the linkage of the principles of Shari’ah towards Islamic finance and accounting.

• Evaluate the effectiveness of auditing, governance, and ethics standards applied in Islamic financial institutions in ensuring compliance with Shari’ah principles and discuss their scope.