Article search by : En. Mohd Nasarudin Ismail (Pembantu Tadbir (Kewangan)

Author : Puan Dalmie Shahrul Suryati binti Azmee Pensyarah Fakulti Pengajian Teknokorporat Kolej Profesional Baitulmal Kuala Lumpur

Internal audit management according to an Islamic perspective is increasingly becoming an observation among scholars not only in Malaysia, but also attracting attention around the world. The main focus is on internal factors to have an impact on the success of human capital development in an organization and provide job satisfaction among employees in an organization. Based on the standard definition by the "Institute of Internal Audit" (IIA, Malaysia), Internal Audit is an independent and objective activity that provides assurance and negotiation to add value and improve operations for an organization. This process can help to achieve its purpose by bringing a more systematic disciplinary approach to evaluate and improve the effectiveness of risk management, control and governance processes in an organization.

Adhering to the principles of Internal Audit ethics, internal auditors are required to use and support the principles of integrity, objectivity, confidentiality, and efficiency. This principle is in line with Islamic principles that emphasize pure attitudes and values ​​such as honesty, trust and responsibility in carrying out a matter. In Islam, this audit function is referred to as 'tabayyun' or checking the truth of information presented from less reliable sources so that the information presented is in accordance with the values ​​and provisions of sharia.

Imam al-Syaukani said, "What is meant by tabayyun is to examine carefully and what is meant by the text is to be careful and not in a hurry, to look with deep knowledge at an event and the news that comes, until it becomes clear and bright for him .” (See Fath al-Qadir, 5/65). Because of this the role of internal audit is important in an organization. Auditors in need to perform the trust for ensure that the governance and financial processes in a company are in a good orderly condition and follow the procedures that have been set.

The role of Audit in accordance with the Islamic perspective refers to the 4 main principles that have been outlined before, namely the principles of integrity, objectivity, confidentiality and efficiency. The integrity of internal auditors forms the basis of trust for reliance on their judgment. In addition, internal auditors also need to demonstrate the highest level of professional objectivity in the collection, evaluation, and presentation of information related to the activity or process being studied. Internal auditors also need to make a balanced assessment of all relevant circumstances and not be influenced by self-interest or other parties in making judgments. Due to this factor as well, the management part of an organization cannot arbitrarily get involved in every internal auditing process that is carried out to avoid conflicts of interest. At the same time, internal auditors need to respect the value and rights of the information received and not disclose information without the permission of the Internal Audit Committee except with legal or professional requirements to do so. The efficiency of internal auditors is also necessary in using knowledge, skills, and experience in performing internal audit services.

Therefore, in order to ensure that the internal audit process is carried out according to the correct ethics and morals, the management in an organization needs to give trust and space to the auditor in carrying out the internal audit process for the purpose of improvement in an organization. This matter becomes an important basis according to the Islamic perspective that everything that happens needs to get an official review and confirmation to ensure that the last information conveyed to the public, namely the workers, is true and authentic without having any form of information distortion.

In conclusion, not only the employer in an organization but also auditors and accountants of the company also need to emphasize all values ​​and ethics based on Islam, so that they will always remember that every caliph on this earth will be held accountable for all his work before Allah s.w.t . This little explanation can hopefully increase our knowledge that internal audit based on this Islamic perspective has started to be applied in most organizations in line with the development of the Islamic economic system.

Date of Input: 01/02/2023 | Updated: 01/02/2023 | nurmiera