To conduct External Shari’ah Audit for Companies, the external Shari’ah audit firm must be approved by the Central Bank. The firm will be granted the Central Bank approval after fulfilling certain criteria, including that the firm must have:
a.
a license issued by competent authorities to perform its business in the UAE,
b.
at least three years of experience in Shari’ah audit. As for new firms, the approval may be granted to such external Shari’ah audit firms under special conditions that enable them to gain experience in External Shari’ah Audit,
c.
adequate resources to conduct the duties of External Shari’ah Audit and disclose the names of personnel specialized in Shari’ah audit engaged by the firm,
d.
an External Shari’ah Audit team that meet the competencies required to carry out External Shari’ah Audit tasks. These include Shari’ah proficiency, accounting and legal experience, and other competencies according to the nature of the Company’s business. In all cases, the personnel specialized in Shari’ah audit who meet the conditions stipulated in Article (7.3) must not be less than two-thirds of the team members,
e.
formal manual that states its methodology in conducting External Shari’ah Audit’s tasks. The manual should be in line with the best practices in this field.
7.2
Firms that conduct external audit and are not specialized in External Shari’ah Audit, they may perform External Shari’ah Audit as long as they meet the criteria stipulated in this Standard and they must be approved by the Central Bank.
7.3
Personnel specialized in Shari’ah audit must fulfil the following conditions:
a.
Should have a university degree in Islamic Shari’ah or relevant specializations.
b.
Should have an experience in the field of Takaful insurance and/or the field of insurance, with priority being experience in Takaful insurance.
c.
Should have a professional certificate in Shari’ah Auditing such as certificates issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) or the General Council for Islamic Banks and Financial Institutions (CIBAFI).
d.
Should have sufficient expertise of at least seven years in Shari’ah Audit.
e.
Proficiency in Arabic and English.
f.
Should not be sentenced by a final decision in crimes related to honor or honesty, or convicted of offences and sentenced by imprisonment.