AAOIFI restructures its technical boards, new governance and ethics focus

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has restructured the framework of its technical boards, breaking out governance and ethics into a standalone concern from within the previous Shariah, and Accounting and Auditing Standards boards.

There will now be three instead of two boards: Shariah Board, Accounting Board, and Governance and Ethics Board. 

The new Governance and Ethics Board will develop and review governance standards and codes of ethics, and all related materials including guidelines, research and interpretations, according to AAOIFI. It will also be responsible for general strategies relating to development and adoption of governance standards and codes of ethics. 

Previously, the governance and ethics focus was subsumed under the Shariah, and Accounting and Auditing Standards Board. 

Auditing standards will be tackled through the Governance and Ethics as well as Accounting Boards, which will coordinate to formulate strategies and standards work relating to auditing standards, including those on Shariah auditing. 

The Shariah Board will continue to be responsible for development and review of Shariah standards.

NEW MEMBERS

There are 50 members of the three new technical boards, who will serve for a four-year period until the end of 2019 or until the succeeding boards are appointed.

The new Shariah Board consists of 20 Shariah scholars from 17 countries. 16 currently serve on Shariah Supervisory Boards of Islamic financial institutions. The remaining four serve central banks, regulatory authorities, governmental bodies or not-for-profit organisations.

The new Accounting Board comprises 15 members from 13 countries. They include accountancy professionals representing Islamic financial institutions, central banks and regulatory authorities, accounting and auditing firms, national accounting standards or national accountants' bodies, as well as academia. 

The new Governance and Ethics Board is made up of 15 members from 13 countries. Members are representatives of Islamic financial institutions, central banks and regulatory authorities, governance-related professions, as well as academia. 

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