Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) meaning

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...

This Practice Note sets out a high‑level summary of the principal standard‑setters and actors in the Islamic finance sector and their respective functions, covering the Islamic Financial Services Board (IFSB), AAOIFI, the different categories of banks and other financial institutions that provide Shari’ah‑compliant products and services, as well as Shari’ah supervisory boards or committees. It outlines who establishes the standards and who delivers or oversees services within the market... Islamic Financial Services Board The IFSB functions as an international standard‑setter, comprising regulatory and supervisory authorities with a vested interest in maintaining the soundness and stability of the Islamic financial services sector—defined broadly to cover banking, the capital market and insurance. Established in 2002 in Kuala Lumpur, Malaysia by the central banks of Bahrain, Iran, Kuwait, Malaysia, Pakistan, Saudi Arabia and Sudan, together with AAOIFI, the Islamic Development Bank and the International Monetary Fund, the IFSB works to nurture a prudent and transparent Islamic financial services industry by introducing new, or adapting existing, international standards that are consistent with...