Measuring Competency Impact on Shariah Audit Effectiveness: A Systematic Literature Review

The effectiveness of Shariah audits in Malaysia is hindered by competency issues, including inadequate skills, lack of professional certification, and insufficient experience among Shariah auditors, particularly within Islamic financial institutions and sectors like zakat and waqf. The shortage of skilled professionals and weak Shariah governance frameworks in zakat and waqf organizations pose significant challenges to ensuring financial integrity and accountability, necessitating urgent efforts to strengthen Shariah audit competencies in these areas. The objective of this paper is to review the proficiency of Shariah auditors and their influence on the efficiency of Shariah audits on a global scale. This research holds significance as it aims to assess the impact of competency on Shariah audit effectiveness through a systematic literature review, providing valuable insights for enhancing the quality and rigor of Shariah audit practices. Five major methodological phases were incorporated in the evaluation processes including the development of research questions under the guidance of the review protocol, followed by systematic search strategies based on identification, screening, and eligibility on several well-known databases, including Scopus, Web of Science and Google Scholar. Finally, the quality of the search results was evaluated, and data was extracted and analyze. Three significant themes were identified as a result of the thematic analysis: (1) Competency; (2) Institution (3) Code of Ethic. From these three basic concepts, 12 sub-themes were developed. This study gives a broad review of the most recent developments in measuring competency as an impact on shariah audit effectiveness. The results might assist policymaker, government, and public sectors idea in tackling competency issues such as developing Shariah audit competency framework. The discussion further underscores the significance of Shariah audit competency in the realm of zakat and waqf operations, highlighting its pivotal role in ensuring compliance with Islamic principles and regulations.