The Islamic harmonization of consolidated auditors’ reports: A further and advanced empirical study from banks groups

Abstract

Purpose

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

Design/methodology/approach

A statistical measurement of the homogenization of the consolidated auditors’ reports of Islamic banks. International and Islamic auditing standards on consolidated auditors’ reports are used as the control (ISA 700 and AAOIFI standard-IAS2).

Findings

The results show a lack of harmonization among the Islamic bank’s groups in several elements related to the form of the consolidated auditor’s report and in all elements related to the independent auditor’s report.

Originality/value

This paper provides new empirical evidence about the measurement of harmonization in the form and content of the consolidated auditors’ reports of Islamic banks groups. It discusses the level of compliance with the consolidated 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. (2020), "The Islamic harmonization of consolidated auditors’ reports: A further and advanced empirical study from banks groups", Journal of Islamic Accounting and Business Research, Vol. 11 No. 3, pp. 647-673. https://doi.org/10.1108/JIABR-08-2017-0114