Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is a

Bahrain Bahrain, officially the Kingdom of Bahrain, is an island country in West Asia. Situated on the Persian Gulf, it comprises a small archipelago of 50 natural islands and an additional 33 artificial islands, centered on Bahrain Island, which mak ...

-based

not-for-profit organization A not-for-profit or non-for-profit organization (NFPO) is a Legal Entity, legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives. While not-for-profit organizations and Nonprofit organ ...

that was established to maintain and promote

Shariah Sharia, Sharī'ah, Shari'a, or Shariah () is a body of religious law that forms a part of the Islamic tradition based on scriptures of Islam, particularly the Qur'an and hadith. In Islamic terminology ''sharīʿah'' refers to immutable, intan ...

standards for Islamic financial institutions, participants and the overall industry. The commission also organizes a number of

professional development Professional development, also known as professional education, is learning that leads to or emphasizes education in a specific professional career field or builds practical job applicable skills emphasizing Praxis (process), praxis in addition t ...

programs (especially the Islamic legal accountant program, observer program and forensic auditing program) in their effort to improve the industry.

History

AAOIFI was established in accordance with the Agreement of Association which was signed by Islamic financial institutions on 26 February 1990 in

Algiers Algiers is the capital city of Algeria as well as the capital of the Algiers Province; it extends over many Communes of Algeria, communes without having its own separate governing body. With 2,988,145 residents in 2008Census 14 April 2008: Offi ...

. Then, it was registered on 27 March 1991 in Bahrain. It has members from more than 45 countries, including central banks and Islamic financial institutions and other parties working in the financial industry and banking, Islamic International. The commission has obtained support for the application of the standards issued by it, where these standards have been applied in the Kingdom of Bahrain and the Dubai International Financial Centre, Jordan, Lebanon, Qatar, Sudan and Syria. The competent authorities in Australia, Indonesia, Malaysia, Pakistan, Saudi Arabia and South Africa issued guidelines derived from the standards and publications.

Organizational structure

The organizational structure of AAOIFI includes a general assembly. AAOIFI also has a board of trustees and an accounting and auditing standards board each consisting of fifteen part-time members, a

Shari'ah Sharia, Sharī'ah, Shari'a, or Shariah () is a body of religious law that forms a part of the Islamic tradition based on scriptures of Islam, particularly the Qur'an and hadith. In Islamic terminology ''sharīʿah'' refers to immutable, intan ...

committee consisting of four part-time members, an executive committee, and a secretary-general who is a full-time executive and heads the general secretariat.

Objectives

The objectives of AAOIFI are: * To develop accounting and auditing thoughts relevant to Islamic financial institutions * To disseminate accounting and auditing thoughts relevant to Islamic financial institutions and its applications through training, seminars, publication of periodical newsletters, carrying out and commissioning of research and other means * To prepare, promulgate and interpret accounting and auditing standards for Islamic financial institutions * To review and amend accounting and auditing standards for Islamic financial institutions AAOIFI carries out these objectives in accordance with the precepts of Islamic Shari'a which represents a comprehensive system for all aspects of life, in conformity with the environment in which Islamic financial institutions have developed. This activity is intended both to enhance the confidence of users of the financial statements of Islamic financial institutions in the information that is produced about these institutions, and to encourage these users to invest or deposit their funds in Islamic financial institutions and to use their services.

References

{{Authority control Non-profit organisations based in Bahrain Islamic economic jurisprudence Islamic banking 1990 establishments in Algeria