ENHANCING THE INTEGRITY OF ISLAMIC FINANCIAL INSTITUTIONS IN MALAYSIA: THE CASE FOR THE SHARI’AH AUDIT FRAMEWORK

Enhancing integrity is of prime importance for any business and it is especially more pressing in the case of Islamic Financial Institutions (IFIs). IFIs claim to practice ethical finance and thus must be in compliance with the Shari’ah in all their business activities and operations. Their stability, financial performance and ability to provide intermediate resources will depend on stakeholders’ confidence in the integrity of the IFIs. A particular feature of confidence and integrity in respect of Islamic financial services is the requirement of conveying to stakeholders that their financial business is conducted in conformity with their religious beliefs (Grais and Pallegrini, 2006).