Islamic Auditing and Conventional Banking

Auditing is an examination and verification of a companys pecuniary and bill records and supporting chronicles by a professional, such as a cognizant Public Accountant. According to AlBaraka, Islamic hope is an institution that mobilizes financial resources and invests that funds in an attempt to achieve pre-determined islamically acceptable social and financial objectives. both(prenominal) mobilization and investment of money should be conducted in accordance with the principles of Islamic Shariah whereas according to Ustaz Hj Zaharuddin (2007) stated that formulaic bank operates based on debtor-creditor relationships.For example, it is betwixt depositors (creditor) and bank (debtor) and borrowers (debtor) and the bank (creditor). Conventional bank maximize profit by charging interest to customers. On the other hand, Basu (2006) defines Audit report as the document to which analyzeor convey his opinion about the fairness of the financial statements. The audit report is one of the vital parts of communication used by auditors. The nature of the report must be clear and concise equal to be disclosed and communicated as its represents the auditors credibility as well as the degree of responsibility being undertake.Often the role of conventional auditor is to come up with a report examining the credibility of the financial statements and whether the financial statements are prepared in accordance with an applicable and germane(predicate) auditing standard. However, when referring to the auditors report of Islamic Bank or the Shariah supervisory report of an Islamic Bank, the scope of auditors report go forth be extended. This is because auditors for Islamic banks must also attest the compliance of the bank practice to that