Keywords
Unifying the frame of reference
Separation between Fatw? and Audit
Shar??ah Standards
Shar??ah Audit
How to Cite
Abstract
A juristic frame of reference is considered a crucial building block for Islamic banks, Shariah boards, and both internal and external Shariah audits. It is also vital at the level of regulatory and supervisory authorities. In this regard, researchers in the Islamic banking industry and practitioners in the field of Shariah audit are striving to crystallize the idea of unifying the frame of reference for Shariah pronouncements (fatwa) issued by Shariah supervisory boards for regional and international Islamic financial institutions. This study addresses the topic of unifying the juristic frame of reference by relying on all credible fatwa issued by Shariah supervisory boards in a specific country or jurisdiction, as well as the Shariah standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The concept of unifying the juristic frame of reference is distinct from the idea of unifying juristic opinions. Based on the problem statement, the objectives of the study were to identify the concept of a juristic frame of reference, its nature, and its relationship with Islamic financial institutions. Additionally, the study analyzed the obstacles to unifying the juristic frame of reference within the Islamic banking system and its effectiveness in Islamic financial institutions. The study reached several conclusions and recommendations, including the need for regulatory and supervisory authorities to mandate the implementation of Shariah and accounting standards issued by AAOIFI. Furthermore, in cases where a Shariah board of an Islamic financial institution does not adhere to a specific standard, disclosure of such incidents should be required. The study also emphasized the importance of establishing a supreme Shariah board within the central bank, tasked with providing guidance and determining the preponderant view when Shariah boards of Islamic financial institutions differ on an issue. This is not to unify fatwa but to support them with juristic evidence, aiming to disseminate knowledge among new students.
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