Accountability in Islamic Financial institution: the role of the Shari’ah Supervisory Board Reports

Abstract

Purpose
The purpose of this paper is to explore whether any discrepancy exists between the disclosed in SSB reports of Islamic banks and the disclosure index which was based on stakeholders’ expectation.

Design/methodology/approach
This study uses contents analysis as the research method to explore Shari’ah audit reporting practices of Islamic Banks.

Findings
The study finds that the level of disclosures overall by IFIs in the sample is rather low compared to the stakeholder expectations.

Practical implications
Our paper have important implication for policy makers as it contribute to the debate on that uniform disclosure standards across the globe need to be implemented in order to ensure a uniform level of disclosure by Islamic Banks.

Originality/value
This study is among the few studies that examine and explore the nature and extent of Shari’ah Supervisory Board in Islamic Banks.