THE 10th ISLAMIC BANKING, ACCOUNTING AND FINANCE INTERNATIONAL CONFERENCE 2022 (iBAF 2022)

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THE 10th ISLAMIC BANKING, ACCOUNTING AND FINANCE INTERNATIONAL CONFERENCE 2022

(iBAF 2022)

Internal Control Practices in Malaysian Higher Learning Institutions: An Exploratory Study on Education Waqf Reporting

Norhanizah Johari

Faculty of Management and Muamalah, Kolej Universiti Islam Antarabangsa Selangor (KUIS), Bandar Seri Putra, 43000 Kajang, Selangor Malaysia

Tel: +603 8911 7000 Ext 2103 E-mail: [email protected]

Nazifah Mustaffha

Latifa Bibi Musafar Hameed

Ahmad Yani Ismail

Abstract

According to the Ministry of Higher Education, Waqf is one of ten shifts highlighted in the Malaysia Education Blueprint 2015-2025 (MoHE). The goal of these changes is to reduce the reliance of higher learning institutions (HLI) on government funding sources. Several universities have already implemented education waqf on their campuses. However, implementation differs by institution. Because the waqf is a public fund, it is critical to investigate the internal control practices used by waqf managers in HLIs in order to meet the waqf's true objectives. The goal of this study is to gain a better understanding of the current state of internal control practices in Malaysian HLIs for waqf management. Library searches and documentation reviews on relevant documents on education waqf will be conducted as part of this study. Internal control is essential in all organizations because it has evolved into one of the most important financial management practice mechanisms. Its functions include risk mitigation, coordination of organizational activities, and decision support for management. Previous research has understated the significance of internal control in managing waqf at HLIs. This study is expected to lay the groundwork for the development of a guideline on internal control practices in Malaysian HLIs.

Keywords: Education waqf; waqf management; internal control practices; public funding

1. Introduction

Most universities currently have mechanisms in place to support revenue generation activities. Fundraising for waqf is one type of income generation activity. In order to realise this goal, the Malaysian Ministry of Higher Education (MoHE) created the Purple Book on Enhancing University Income Generation, Endowment, and Waqf, which serves as a useful guide for navigating university income generation activities. One of the Purple Book's goals is to promote and improve the implementation of the waqf model as a viable and sustainable source of funding for universities (MoHE, 2017). In line with MoHE efforts, universities need to have their own policies on all income generation activities to uphold good governance, integrity and reputation of the universities. Public universities must accept that under the existing Malaysian legal provisions, the State Islamic Religious Council (SIRC) is the sole trustee of waqf in its respective state. Thus, in establishing a waqf, universities must acquire the legal status as waqf administrators from the respective SIRC. In other words, the SIRC will act as a sole trustee

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(Mutawalli) and universities as the waqf administrator on behalf of the waqf giver (al-waqif) before it is distributed to the waqf beneficiaries (Mauquf Alaihi).

Waqf is a type of Islamic socioeconomic fund-raising that serves as a source of funding and a catalyst for community development. Waqf assets can take the form of cash or real estate (such as land or buildings) and are used to fund Shariah-compliant projects (such as mosques, learning institutions, hospitals or public amenities).

Waqf is distributed in accordance with the wishes of the giver. Waqf is divided into four tenets: (1) the Givers, (2) the Clear Statement, (3) the Designated Assets, and (4) the Beneficiaries. Once established, a waqf cannot be given as a gift, inherited, or sold (MoHE, 2017)

One of the key success factors for sustainable waqf is an assurance that the documentation of all waqf activities must be reported on a regular basis. Of which, the Waqf Management Committee must demonstrate transparency and accountability to uphold the waqf objectives. The development of waqf in higher education can be intensified by effective fund management, strong legislation, good governance, marketing efforts and identify appropriate waqf management model to be applied (Mustaffa & Muda, 2014). In that case the management of waqf has to make sure that the internal control mechanism is in place and well-functioning at the institutions level. Internal controls are the mechanisms, rules, and procedures that a company implements to ensure the integrity of financial and accounting information, as well as to promote accountability and prevent fraud. As a result, this study is being carried out to investigate one aspect of internal control practise, namely the reporting of education waqf in Higher Learning Institutions (HLIs).

2. The History of Waqf in Education

Waqf in education began with the establishment of religious schools such as Sekolah Agama Rakyat (SAR), the School of Religious Affairs (SAN), madrasah, and cottages (Asmak, 2009; Mustaffa & Muda, 2014, Ahmad, Baharuddin, Wan Yusoff, Syed Abdullah & Soon, 2016). Waqf in education is not a new concept, as it has been practised in both Muslim and Western countries (Ahmad et al., 2016). Waqf in education is rapidly expanding, and it has now reached HLIs. Several studies have revealed that higher education institutions are now committed to implementing waqf activities at their institutions (Mustaffa & Muda, 2014; Ahmad et al., 2016 & Hussin &

Abdul Rahman, 2018). Education is becoming more expensive due to rising costs of operating quality education (Mujani, Mohd Taib, & Rifin, 2016), which will be exacerbated by the arrival of pandemic COVID-19 in early 2020, causing many to suffer for survival.

There are various types of waqf instruments available in which cash waqf is more conveniently used for various types of activities such as; education, food, justice, maintenance of waqf buildings and mosques, social services, water and workers (Mat Nor, Omar, Abd Aziz & Abdul Hamid, 2021). Cash waqf is believed to be more efficient then the immoveable waqf as it would be able to fulfill the current needs of the waqf receivers.

2.1. Internal Control Framework

The Committee of Sponsoring Organizations of the Treadway Commission (COSO, 2013) has developed a framework to meet three categories of internal control objectives: (1) operations, (2) reporting, and (3) compliance. The framework also addresses five integrated internal control components: (1) the control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring activities. Internal controls are an important mechanism for increasing accountability in any organisation (Ayedh, Jamil & Zainuddin, 2021). A lack of internal controls may result in fraudulent activities, which may impede the achievement of organisational goals (Islamiyah, Siraj & Osman, 2020). This study will look into reporting, which is one of the internal control objectives. In which related information reported will be observed through the HLI Education Waqf websites.

Table 1. Internal Control Mechanism.

Control Environment Risk Assessment Control Activities Information &

Communication

Monitoring Activities 1. Commitment to

integrity & ethical values 6. Specifies suitable

objectives 10. Select & develop

control activities 13. Uses relevant information 14. Communicates internally

16. Conducts ongoing evaluations

2. Exercise oversight responsibility

7. Identifies & analyses risk

11. Selects & develops control over IT

15. Communicates externally

17. Evaluates &

communicates deficiencies 3. Establishes structure,

authority & responsibility

8. Assesses fraud risk 12. Deploys through policies & procedures 4. Commitment to

competence 9. Identifies & analyses significant change 5. Enforces

accountability

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2.2. Reporting Education Waqf by the Malaysian Higher Learning Institutions

One of the goals of internal control, according to The Committee of Sponsoring Organizations of the Treadway Commission (COSO, 2013) is reporting. In which reporting is one of the mechanisms used to improve an organization's accountability and transparency. In this case, reporting education waqf to stakeholders and interested parties via reporting or communication channels on the development and use of donated waqf funds by HEIs is critical (Bahari & Ahmad Shukor, 2017). According to a recent study by Kamaruddin, Mohd Hanefah, &

Masruki (2021), the reasons for poor waqf reporting practises include the absence of standardised waqf reporting standards, a lack of reporting or disclosure awareness among waqf management, limited reporting channels from state authorities to national authorities, diversification in the governance structure, and the reluctance of waqf administration to disclose waqf reporting in Malaysia.

The implementation of education waqf should be addressed through reporting so that the related waqf administrator, the university community, the SIRCs, and the waqf givers can monitor it. Reporting, on the other hand, ensures that internal controls of financial reports are trustworthy and consistent with existing standards, as well as that the organization's activities are carried out effectively and efficiently (Radianto & Laturette, 2020).

As a result, it is recommended that the institution periodically report and disclose the performance and progress of their fund (Johan et al., 2016).

3. Research Methodology

The waqf education report published on the website by Malaysian HLIs was observed and analysed to achieve the research objectives. Waqf education was chosen for this study at four HLIs: Universiti Kebangsaan Malaysia (UKM), Universiti Putra Malaysia (UPM), Universiti Islam Antarabangsa Malaysia (UIAM), and Universiti Sains Islam Malaysia (USIM). As of July 31, 2022, their websites had been visited and observed.

4. Findings and Discussion

The results of the observation on the four HLIs’ websites (UKM, UPM, UIAM and USIM) are tabulated in Table 2 overleaf:

Table 2. Results of observation on waqf education in HLIs websites.

Name of HLIs: UKM UPM UIAM USIM

1. Website address https://give2ukm.ukm.

my

https://wazan.upm.edu .my

https://www.iium.edu.

my

https://pwz.usim.edu .my

2. Name of trustee Available Available Available Available

3. Collection method(s) Available Available Available Available

4. Amount Collected Available Available Available Not Available

5. Amount Disbursed Available Not Available Available Not Available

6. Waqf Education Activities Available Available Available Available

According to the observations, all of the HLIs in this study published an annual report on their waqf education information and activities. However, the information provided on the websites varies in content. In their website, UIAM has transparently reported information on waqf collection methods, amount collected, amount disbursed, total number of recipients, and waqf education activities. Unfortunately, USIM's website does not include information on waqf amounts collected and disbursed. Some information may not be available on the website because it is only accessible to their relevant stakeholders.

The study proposed that the information listed in Table 2 be made available on the HLI websites because it is an effective platform for disseminating information to potential waqf givers and the general public. It is one form of free marketing used by HLIs to promote waqf education to potential waqf givers or the HLIs community.

Indeed, it demonstrates the HLIs' transparency and accountability in reporting their waqf education fund collection and distribution for the benefit of potential and current recipients. As a result, it indicates that the HLI's internal control system for waqf is in place and well-functioning.

5. Conclusion and Recommendations

As an assurance to key success factors of sustainable waqf, all waqf activities must be reported on a regular basis. To uphold the waqf objectives, the waqf administrator must ensure that the internal control mechanism is

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in place and functioning properly at the institution level. Waqf is public money, so it must be reported in a transparent manner. Anyone should be able to access it through a published report. A published report on waqf collection methods, amount collected, amount disbursed, total number of recipients, and waqf education activities demonstrates how transparent and accountable HLIs are in reporting their waqf education fund for the benefit of potential and current recipients. As a result, it encourages the waqf administrator to implement a sound internal control system in the HLIs. Future study should investigate how the waqf administrator practices other mechanism of internal control in their institutions.

Acknowledgements

This work is supported by Ministry of Higher Education (MoHE) under Fundamental Research Grant Scheme (FRGS) FRGS/1/2021/SS02/KUIS/03/1.

References

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Asmak A.R. 2009. Peranan Wakaf Dalam Pembangunan Ekonomi Umat Islam dan Aplikasinya di Malaysia. Jurnal SyariahVol. 17, Bil. 1.

Ayedh, M. M. A., Jamil, N. N. & Zainuddin, M. T. 2021. The Impact of Internal Control System on the Accountability Practices in Waqf Institutions: Evidence from Al Rahma International Waqf. Research Journal of Finance and Accounting www.iiste.org. ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online). Vol.12, No.16, 2021.

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Hussin, R. & Abdul Rashid. R. 2018. Pelaksanaan Wakaf di Universiti Awam: Cabaran dan Cadangan Penambahbaikan. Voice of Academia.

VoA, Volume 13, Issue 2, 2018 pp. 23-34.

Islamiyah, N., Siraj, S.A. & Osman, A. Z. 2020. Internal Control Practices of Mosques in Java,

Indonesia. Jurnal Akuntansi dan Keuangan Indonesia: Vol. 17: Iss. 1, Article 5. DOI: 10.21002/jaki.2020.05

Johan, J. Yusof, A. & Omar, I. 2016. Waqf for Financial Sustainability of Higher Education in Malaysia: Issues and Challenges. World Applied Sciences Journal 34(9):1167-1172. DOI: 10.5829/idosi.wasj.2016.34.9.15716

Kamaruddin, I.H., Mohd Hanefah, M. & Masruki, R. 2021. Empirical Investigation on Awqaf and Its Socio-Economic Impact in Malaysia (2021). Waqf Led Social Finance: Innovative Solutions to Modern Applications (pp. 218-233). London: Routledge (2021), Available at SSRN: https://ssrn.com/abstract=3848285

Mat Nor, U.A., Omar, H. H., Abd Aziz, N. & Abdul Hamid, S. 2021. The Waqf Institution Funds Management at Public Universities in Perlis, Malaysia. Jurnal Hadhari 13 (2) (2021) 245 – 256 ejournals.ukm.my/jhadhari. ISSN 1985-6830. eISSN 2550-2271

MoHE. 2017. Enhancing University. University Transformation Programme, Purple Book Income Endowment & Waqf Generation. ISBN 978-967-0888-22-4

Mujani, W.K., Mohd Taib, M.S. & Rifin, M. K. I. 2016. Waqf Higher Education in Malaysia. Proceedings of the 2016 International Conference on Education, E-learning and Management Technology. https://dx.doi.org/10.2991/iceemt-16.2016.100

Mustaffa, N. & Muda, M.Z. 2014. Pengurusan Wakaf Pendidikan di Institusi Pengajian Tinggi Malaysia: Satu Sorotan Literatur. International Journal of Islamic and Civilizational Studies. 01 (2014) pp. 45-57 | www. http://jurnalumran.utm.my/index.php/umran

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THE 10th ISLAMIC BANKING, ACCOUNTING AND FINANCE INTERNATIONAL CONFERENCE 2022

(iBAF 2022)

Bibliometric Analysis and Review of Shariah Audit Sari Nuzullina Rahmadhani

Faculty of Economics and Business, Universitas Medan Area (UMA) Jl. Setia Budi No.79 Kota Medan, Sumatera Utara, Indonesia

Tel: +628 2277629797 E-mail: [email protected]

Rana Fathinah Ananda

Fauziah Rahman

Putri Tamara Raudhatul Jannah

Abstract

The aim of this research is to draw a map on shariah audit since 2009 to 2022. The potential citations, keywords, authors, affiliations, country will be exposed in this paper. A content analysis are used in this study from 78 articles related to shariah audit which published by Scopus Database as a reference to derive imperative findings. This study finds that Darmadi, S. is the most authors, Journal of Humanomics is the most published journal, Malaysia is the most published country, corporate governance disclosure in the annual report: An exploratory study on Indonesian Islamic banks is the most cited article, and Universiti Putra Malaysia is the most affiliated institutions. This analysis addresses the literature gaps on measuring the compliance, determinants and the growth of shariah audit. Future research is expected to include articles which published by WoS (Web of Science) database. A root on shariah audit discipline is exposed and can be used as reference for practitioners in various Islamic financial institutions. To the best of the authors’ knowledge, this is the first article that discuss on shariah audit field using a systematic literature review.

Keywords: Shariah Audit; Islamic Finance; Bibliometric

1. Introduction

The conduct of a Shariah Audit (SA) must be in accordance with all applicable laws and regulations in Malaysia as well as the fatwas, regulations, and guidelines issued by the Shariah Supervisory Board (SSB), the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and national accounting standards and practices. This means that in addition to complying with Islamic law, the SA must also do so in accordance with civil law. Without compromising the criteria of the conventional, SA techniques are primarily intended to boost the institution's financial element that emphasizes shariah compliance and improve the report's credibility (Kasim & Sanusi, 2013). Thus, strengthening shariah compliance and enhancing the integrity of Islamic Financial Institutions (IFI) are the primary goals of the need for SA techniques.

Since the early 2000s, the Islamic banking sector has quickly expanded (Safiullah and Shamsuddin, 2018).

Global investment in assets subject to Sharia law climbed from $1.4 trillion in 2014 to $1.5 trillion in 2015 (IFSB, 2017). It is assumed that this increase happened since the growing up of people’s awareness of practisoners /bankers on the importance of adopting shariah audit. The evolution of Islamic finance across 60 countries of 14

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jurisdictions has concomitantly amplified its complexity in size and activities (Shabsigh et al., 2017). With this positive development, Shariah audit could play crussial role in supporting the development of Islamic finance institution.

1.1. The Importance of Shariah Audit (SA)

The existing empirical studies have mainly focused on countries such as Malaysia (Mohd Ali et al., 2018;

Najeeb and Ibrahim, 2014) and Indonesia (i.e., Suryanto and Ridwansyah, 2016). The existing review research discussed shariah auditing from various aspects based on the narrative theoretical and critical review (Alahmadi et al., 2017; Khalid and Sarea, 2021; Najeeb and Ibrahim, 2014). Recently, to the best of the authors’ knowledge, there is a previous study on Shariah audit by Handoko, Luqman Hakim and Mardian, Sepky (2021), which acknowledge about a “Mapping the Knowledge of Islamic Accounting Studies on Shariah Audit: A Bibliometric Analysis". Therefore, we want to make further research related to SA and explore the sustainability of research related to SA.

To get intended, the result of this study will conduct bibliometrics to analyze 78 articles derived from Scopus database. Expectedly, the study will expose the continuity of research since 2009.

2. Literature Review

According to AAOIFI’s Auditing Standard for Islamic Financial Institutions No. 1 (ASIFI 1), the objective of an audit of financial statements of IFIs “… is to enable the auditor to express an opinion as to whether the financial statements are prepared, in all material respects, in accordance with the Shariah Rules and Principles, the accounting standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and relevant national accounting standards and practices in the country in which the financial institution operates”

(AAOIFI, 2010).

The research on SA would be interesting to analyze since it has been a recent subject to discuss. On the other hand, the regulation in SA has a different perspective to conventional audit. However, the differences emerge based on some SA standards (Yahya, 2018). To achieve the objectives of the study, a systematic literature review approach was used. For example, the conventional audit uses International financial reporting standards (IFSB) and IAS (broadly any set of generally accepted accounting principles - GAAP), while the SA using Islamic finance standards as the shariah principles and rules.

The literature extensively deals with shariah scrutiny from the perspective of agency, while it has not given sufﬁcient consideration to other theories such as the Maqasid al Shariah and Islamic accountability theory.

The previous study reveals that the current review provides a comprehensive systematic evaluation of the growing literature on shariah auditing from various aspects such as geographical distribution and theoretical lens.

The study presents many opportunities for researchers to ﬁll the gaps in the future by accurately identifying research gaps and presenting future proposals to researchers.

The SA performs the developing, monitoring and evaluating the organization’s compliance with the provisions and principles of Islamic shariah and related controls (Khalid et al., 2017). SA can be interpreted as a process to ensure that the activities carried out by Islamic financial institutions do not violate shariah or a comprehensive shariah compliance test for shariah activities. Every shariah financial institution that operates must of course be in accordance with sharia principles and good governance according to the rules that have been set. SA is one of ways to maintain and ensure the integrity of sharia financial institutions in implementing sharia principles.

Therefore, if there is a failure in the SA, there will have a bad impact on the fulfillment of sharia principles itself.

Numerous investigations have noted that the words “Shariah review”, “Shariah auditing”, and “Shariah supervision” are frequently used interchangeably with little distinction made between their technical distinctions (Sultan, 2007; Alomrani, 2015). By obscuring the distinctions between the terminologies, it may cause concepts to become unclear, which may then result in a misinterpretation of the requirements for the position of the Shariah auditor. By distinguishing the concepts, shariah auditing will be defined more fully and precisely, allowing for an accurate evaluation of its efficacy.

The effectiveness of SA refers to the extent to which the auditors can achieve the objectives of institutions through the process of verifying their commitment to the provisions of Islamic shariah. It is, therefore, crucial to have factors such as independence and efﬁciency to enhance the effectiveness of the audit process. Shaﬁi et al.

(2014a) focused on the need to build the auditor’s competency through training courses. This is in line with Khalid et al. (2017), who stressed that efﬁciency in shariah auditing enhances audit quality through professional certiﬁcates providing the shariah auditor with skills that improve the ability to perform tasks more professionally.

Aziz et al. (2019) suggested that shariah auditing does not completely reject all of the methods and procedures of conventional auditing because they can be applied to gauge compliance with shariah. Furthermore, Yahya (2018) said that the socioeconomic framework and culture of Islamic society can benefit from auditing approaches learned from traditional auditing in the financial industry. Internal shariah auditing has a similar goal to

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conventional financial institutions' auditing processes. But there are discrepancies depending on the national accounting standards, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards, and Auditing Standard No. 1 for Islamic Financial Institutions (ASIFI).

Even though both tasks were carried out by the same department, AAOIFI consolidated the scope of SA and shariah review and gave each a distinct level of accountability within the organization. The system and departments that are a part of the supervisory process should not be referred to as shariah supervision. The name

“shariah auditing department” or “shariah review department” for the overseeing division would be more fitting (Hameed and Mulyani, 2007).

Additionally, Abubakr (2013) advises that to make sure that Islamic finance is headed in the right direction, administration of shariah oversight should be given great attention. According to Alomrani (2015), the law and its articles must give the fundamentals that encompass all relevant topics and spell out the process of its work in order to arrange the work involved in shariah supervision and shariah auditing.

3. Methodology

This study aims to investigate the topic of SA by tracing its evolution over a ten-year period using a comprehensive bibliometric analysis of 78 publications from journals between 2009 and 2022. The research in the previous section showed that since shariah audit was first conceptualized, the number of publications related to it has grown dramatically. Out of the number of articles, the most cited article in the SA subject is “Corporate governance disclosure in the annual report: An exploratory study on Indonesian Islamic banks” Darmadi, S.

(2013) which has 47 citations. Additionally, In terms of the total number of citations received, Darmadi, S. and Ullah, H. are the most dominant authors, with 47 and 37 citations. Then, the International Islamic University Malaysia is in the top list, while for the total citations received, the University Putra Malaysia is the highest in the rank with a total citation of 41, followed by the International Islamic University Malaysia with a count of 24.

Additionally, according to the overall number of citations, Malaysia, which has a count of 283, is the most prominent nation, followed by the United Kingdom, which has a count of 88. The findings paint a picture of the most important factors that have a substantial impact on SA and highlight the growing interest in SA by prominent scholars and institutions globally. Moreover, based on the results of a co-citation analysis, it reveals that Darmadi, S. and Ullah, H. are the two most frequently cited authors in the subject of SA. This result means the concept of SA has broader aspects that researchers could explore. Meanwhile, other encouraging keywords considerably could shape the future works of SA.

4. Result and Discussion

In this part, the results of the analysis using the techniques of bibliometric analysis are elaborated. Firstly, it would present the citation analysis results, sequentially followed by analyses of co-citation and co-occurrence of author keywords. There are items to be reviewed in this citation analysis, such as the number of publications per year, most cited documents; most dominant authors; most dominant journals; most dominant institutions, and most dominant countries.

As depicted Table 1, it shows a total of 78 articles from 71 journals, written by 199 authors affiliated to 150 institutions from 99 countries, with a total number of references cited of 540. These general results give a portrait of all the articles being reviewed on the subject of shariah audit.

Table 1. General Results.

Criteria Quantity

Articles 78

Journals 71

Authors 199

Institutions 150

Countries 99

Cited References 540

Furthermore, the next most cited article is the work of Darmadi, S. (2013). In this article, the author revealed that Bank Muamalat and Bank Syariah Mandiri, the county's two largest and oldest Islamic commercial banks, score higher than their peers. Disclosure of the sample banks on some dimensions, such as board members and risk management, is found to be strong. On the other hand, disclosure on internal control and board committees tends to be weak.

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Table 2. Most cited documents in Shariah Audit Literature.

Rank Document Authors Citations

1 Corporate governance disclosure in the annual report: An exploratory study on Indonesian Islamic banks

Darmadi, S. 47

2 Shari’ah compliance in Islamic banking: An empirical study on selected Islamic banks in Bangladesh

Ullah, H. 37

3 Corporate governance quality of Islamic banks:

measurement and effect on financial performance

Ajili, H., Bouri, A. 30 4 An evaluation of corporate governance practices of

Islamic banks versus Islamic bank windows of conventional banks: A case of Pakistan

Bukhari, K.S., Awan, H.M., Ahmed, F.

30

5 Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?

Haridan, N.M., Hassan, A.F.S., Karbhari, Y.

29

6 Governance mechanisms and efficiency: Evidence from an alternative insurance (Takaful) market

Karbhari, Y., Muye, I., Hassan, A.F.S.,

Elnahass, M.

26

7 Does corporate governance affect the performance of Islamic banks? New insight into Islamic countries

Aslam, E., Haron, R. 24

8 Did corporate governance mechanisms affect earnings management? Further evidence from GCC Islamic banks

Kolsi, M.C., Grassa, R. 24

9 Professionalizing the role of Shari'ah auditors:

How Malaysia can generate economic benefits

Najeeb, S.F., Ibrahim, S.H.M.

21

10 Shari'ah governance of Islamic Banks in Bangladesh issues and challenges

Abdullah, M.F., Rahman, A.A.

20 11 Exploring auditor independence: An interpretive

approach

Hudaib, M., Haniffa, R.

20 12 Conceptualizing the duties and roles of auditors in

islamic financial institutions what makes them different?

Othman, R., Ameer, R. 19

13 Relationship between internal Shariah audit

characteristics and its effectiveness Khalid, A.A., Haron,

H.H., Masron, T.A. 18 14 Competency and effectiveness of internal Shariah

audit in Islamic financial institutions

Khalid, A.A., Haron, H., Masron, T.A.

16

15 Problems of Shariah governance framework and different bodies: An empirical investigation of Islamic Banks in Bangladesh

Alam, M.K., Mustafa, H., Uddin, M.S., Islam,

M.J., Mohua, M.J., Hassan, M.F.

12

As depicted in Table 3, It displays the shariah audit subject's most influential authors. The number of publications the authors have written regarding shariah audit and the number of citations each of them has gotten are used to determine the authors' influence. The writers with the most citations overall are Darmadi, S., and Ullah, H., with 47 and 37 citations, respectively.

Table 3. Most Dominant Authors (in terms of total citations received).

Rank Authors Documents Citations

1 Aslam, E 4 30

2 Alam, M.K 2 12

3 Endri 1 11

4 Ridwan, R 1 10

5 Aribi, Z.A 1 9

6 Sulub, S.A 2 7

7 Savitri, E 1 5

8 Ali, N.A.M 1 5

9 Khalid, A.A. 7 4

10 Al-Hunnayan, S.H. 1 4

As depicted in Table 4, it shows the most dominant journals have narrated about the concept of shariah audit where the International Journal of Islamic and Middle Eastern Finance and Management has a higher rank with the number of published articles of 5 and followed by Humanomics with the number of published articles of 4.

On the total number of citations received, the Humanomics attests as the most dominant journal with a total of citations of 47, followed by the International Journal of Islamic and Middle Eastern Finance and Management with a total citation of 37.

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Table 4. Most Dominant Journals (in terms of the total article published).

Rank Journal Articles Citations

1 Humanomics 4 47

2 International Journal of Islamic and Middle

Eastern Finance and Management 5 37

3 International Journal of Islamic and Middle

Eastern Finance and Management 5 30

4 Management Research Review 1 30

5 Journal of Management and Governance 2 29

6 Journal of International Financial Markets,

Institutions and Money 3 26

7 Corporate Governance (Bingley) 3 24

8 International Journal of Islamic and Middle Eastern Finance and Management

5 24

9 Pacific Basin Finance Journal 1 21

10 Journal of Islamic Economics, Banking and Finance

2 20

As depicted in Table 5, the most significant organizations that have written about shariah audits are included in Table 5. The institutions are depicted based on the authors who have written for those publications, earned citations from them, and have affiliations there. The International Islamic University Malaysia is at the top of the list for total papers published, however the University Putra Malaysia is ranked best for total citations received, with a total of 41, followed by the International Islamic University Malaysia with a count of 24.

Table 5. Most Dominant Institutions (in total citations received)

Rank Institutions Documents Citations

1 Universiti Putra Malaysia 5 41

2 International Islamic University Malaysia 20 24

3 Universiti Sultan Zainal Abidin 4 20

4 Universiti Sains Malaysia 4 18

5 Universiti Teknologi MARA 8 -

6 Universiti Sains Islam Malaysia 7 -

7 Universiti Pendidikan Sultan Idris 7 -

8 Universiti Kebangsaan Malaysia 5 -

9 Ahlia University 4 -

The most popular nations with highly cited works on shariah audit are included in Table 6. Malaysia is the most prominent nation, according to the overall number of citations, with a count of 283, followed by the United Kingdom with 88.

Table 6. Most Dominant Countries (in total citations received).

Rank Country Documents Citations

1 Malaysia 52 283

2 United Kingdom 7 88

3 Indonesia 6 73

4 Tunisia 3 55

5 Bangladesh 6 53

6 Pakistan 5 35

7 Nigeria 3 28

8 Saudi Arabia 4 17

9 Bahrain 5 14

10 Australia 2 2

5. Conclusion

This study attempts to complement the existing works on SA by providing insightful content that adopts a systematic review. Each of the studies has limitations, including for this study despite the significant contribution of this study. This study's use of a single source or database for data collecting and synthesis poses one restriction.

Although prior bibliometric studies avoided duplication by using a single database, there may be additional methodologies that can be used to analyze the literature about shariah audits. Another drawback is the inability to fully reflect the broader and deeper context of the articles' citation structures. However, this study has adequately outlined several additional citation formats for the SA literature.

The study has some significant implications. Among others, it gives some important information on the dominant contributors to SA, providing information on the most influential research, journals, and organizations that contribute to the SA subject. The report also demonstrates the evolution and advancement of the SA topic over time as well as disclosing the key research themes that emerge from the literature of SA and describes a comprehensive insight on the concept of SA that can be used as a reference for any strategic initiatives.

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