Accounting, Auditing and Governance for Takaful Operations (eBook)

Dr. Sheila Nu Nu Htay, PhD is PhD Programme Coordinator at the Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM). Mohamed Arif was CEO of Takaful Indonesia from 2001 to 2004. From 1985 to 2000, he was General Manager Finance and Administration/Company Secretary of Takaful Malaysia Assoc. Prof. Dr. Younes Soualhi, PhD, is an Associate Professor at the International Islamic University Malaysia (IIUM), Chairman of the Shariah Board of HSBC Amanah Malaysia and Chairman of the Shariah board of Munich Re Takaful. He is also a founding member of the French Council of Islamic Finance (COFFIS), Paris. Hanna Rabittah Zaharin is an audit assistant with AFTAAS Corporate Advisory Ibrahim Shaugee is a consultant in Islamic finance, accounting systems and taxation, based in the Republic of Maldives.

Foreword ix

Preface xi

Acknowledgments xv

1 Introduction to Takaful and Retakaful 1

2 Takaful Companies and Their Accounting Environment 33

3 Prevailing Accounting Standards and Accounting Entries for Takaful Operators 53

4 Financial Statement Analysis 103

5 Zakat Computation and Distribution for Takaful and Retakaful Companies 115

6 Auditing and Governance for Takaful Operators 125

Appendix 1: Sample Audit Proposal 155

Appendix 2: Audit Plan Timeline 167

Appendix 3: Audit Program 169

Appendix 4: Report on Shariah Compliance Audit for Takaful X Shd. As of 31 March 2011 171

About the Authors 197

Index 199