The Muamalat Newsletter Vol. 2 2023

FEM eNewsletter | Dec 2023 36 References Bittel, L. R. et.al (1989). Encyclopedia of Professional Management, 2nd edition. USA: Grolier International. Helms, Marilyn M. (2000). Encyclopedia of Management, 4ed. Gale Group Inc. Kamri, N. A., Ramlan, S., & Ibrahim, A. (2014). Qur’anic Work Ethics. Journal of Usuluddin, 40, 135- 172. Khan, Muhammad Akram, (1985). Role of the Auditor in an Islamic Economy. Journal of King Abdulaziz University: Islamic Economics, 3 (1). https://ssrn.com/abstract =3115943 Kamal Hassan, M. (2015). Reconstruction of Wasatiyyah Based on Muslim Civilization in Asian Region. Proceeding of International Conference on Empowering Islamic Civilization in the 21st Century. Maznah Mohamad. (2017). Religion and politics in Malaysian nation- building: a “double-movement” of hegemonic and plural Islam. Inter-Asia Cultural Studies, 18 (3), 445-453. ScholarBank@NUS Repository. https://doi.org/10.1080/14649373.2017.1346168 Muhammad Loqman. Islamic Ethics in Management. In: Khaliq Ahmad et.al (ed). Ethics in Business and Management. London: ASEAN Academic Press. 2001. OECD. (1999). OECD Principles of Corporate Governance. OECD Publishing. Rafik, I.B. (1997). Islamic business ethics (No. 2). International Institute of Islamic Thought (IIIT). Weber, J. (1981). Institutionalizing Ethics into the Corporation. MSU Business Topics. Spring 1981. Wotruba, T., L. Chonko, & T. Loe. (2001). The Impact of Ethics Code Familiarity on Manager Behavior. Journal of Business Ethics. 33. 10.1023/A:1011925009588. examines the scopes and processes of Shariah audit and the competency of Shariah auditors in Shariah- based institutions as the party that provides Shariah governance and assurance. Shariah governance elements within the LODs are also to be discussed as part of the development of the Performance Framework that constitute Shariah governance and assurance, namely governance, risk management and compliance that plays its role at distinguished LOD: • First line of defence: Business units • Second line of Defence: Shariah Review, Shariah risk • Third line of defence: Shariah audit • Fourth line of defence: Competency to assess governance, risk and internal control in Shariah compliant establishments; missing link of established criterions for audit Conclusion The need for empowered Shariah governance, risk management and assurance in Shariah based sectors is more critical than ever. With the assets and human resources approximately more than MYR200 billion and 12,000 employees in year 2017 for Islamic institutions governed under the Prime Minister’s Department alone, a form of evaluation model that captures the efficiency and accountability of the institutions is critical to maintain trust of the society on worthiness and social returns of public resources spent. One lesson that could be learnt by the leaders of Islamic institutions, it has to be about the need to fool- proof the governance for accountability and efficiency of the performance to gain the public trust on the operations of the organisations. Hence, the motivation for the study is to develop empowered Shariah governance, risk management and assurance that could serve as guiding principles, strategies or action plans within Shariah-based institutions to contribute to the achievement of the notion of ummatan wasatan. Dr. Safeza Mohd Sapian Senior Lecturer Banking and Islamic Finance safeza@usim.edu.my Prof. Dr. Zurina Shafii Professor Shariah Audit and Islamic Accounting zurina.shafii@usim.edu.my Mrs. Kasumalinda Alwi Senior Lecturer Management Accounting kasuma@usim.edu.my Mrs. Adlin Masood Senior Fellow Marketing and Public Relations adlin.masood@usim.edu.my