The harmonization of audit reports of Islamic banks: An advanced and original empirical investigation

Abstract

Purpose

The purpose of this paper is to examine the level of harmonization of auditors’ reports issued by independent auditors of Islamic banks.

Design/methodology/approach

The homogenization of the auditors’ reports of Islamic banks has been statistically measured. Supranational auditing standards on auditors’ reports (ISA 700 and AAOIFI standard) are used as the control.

Findings

The results show lack of harmonization in several elements related to the form of the auditor’s report and in all elements related to the content of the auditor’s report among the Islamic banks.

Originality/value

This paper provides new empirical evidence about the measurement of harmonization in the form and content of the auditors’ reports of Islamic banks. It discusses the level of compliance with the elements enumerated by the standards issued by the International Federation of Accountants and the Accounting and Auditing Organization for Islamic Financial Institutions.

Citation

Fakhfakh, M. (2017), "The harmonization of audit reports of Islamic banks: An advanced and original empirical investigation", Journal of Islamic Accounting and Business Research, Vol. 8 No. 2, pp. 203-228. https://doi.org/10.1108/JIABR-05-2014-0016