Internal Shariah audit change: an identification of specific Islamic legal maxim in Islamic banking institution

• Published in: QUALITATIVE RESEARCH IN FINANCIAL MARKETS
• Main Authors: Abd Rahman, Nurulhuda; Hoque, Muhammad Nazmul; Osman, Muhamad Rahimi; Mastuki, Norazam
• Format: Article; Early Access
• Language: English
• Published: EMERALD GROUP PUBLISHING LTD 2024
• Subjects: Business & Economics
• Online Access: https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001315312500001

PurposeThis paper aims to provide insight on internal Shariah audit change process in Islamic banking institution using sociology of translationin and the identification of specific Islamic legal maxim (ILM).Design/methodology/approachThis paper gathered findings using qualitative approach where a single case study was selected. The study began with a preliminary study to assist the selection of the case study and later two phases of interviews done at the institution selected as the case study.FindingsThis paper has provided insights into the internal Shariah audit practices change using sociology of translation that incorporated ILM as the basis to strengthen the Islamic banking operations by achieving maqasid al-Shariah (MS). The findings of this paper provide distinguished insight on internal Shariah audit change process and ILM. The significance of this study is that a new contribution through exploring the viewpoints of the perception that satisfying the minimum legal requirements of Shariah compliance may not be sufficient for proper Shariah audit in IBIs. Therefore, the existence of ILM within a change process serves as a basis for best practices to be able to achieve MS through the means (wasa'il) used in realising IBIs' objectives.Originality/valueThe application of ILM to internal Shariah audit change process that would guide Muslim auditors to be in line with Islamic principles. This paper focuses on the application of ILM to the Shariah audit practices changes as ILM embodied ethical value to the general concept of maslahah (well-being) under MS in the period of post-COVID-19.