ISBD View
Ali Idiab Mohamed Idiab
The Evaluation of Internal Audit in Islamic and Commercial Banks: A Case Study the Faisal Islamic Bank of Egypt and the Sahara Bank of Libya
This study is related to the evaluation of internal audit of the Islamic and commercial banks by carrying case study the Faisal Islamic Bank of Egypt and its branches in the city of Cairo, and the Libya Sahara Bank and some of its branches in the city of Tripoli and Sabha. Generally, Islamic and conventional banks require banking monitoring procedures in order to prevent fraud, abuse, manipulation, negligence and errors in any of their business transactions. The Problem of the study focused evaluation of internal audit of the Islamic and commercial banks, on the other hand there are a lot of commercial banks in the world has been Bankruptcy, and some of them subjected to semi-bankruptcy in the world, Sahara Libyan Bank was one of them has no accurate, objective and fair internal audit in his bank, and absence of evaluation for this audit. Therefore, the objective of this study is to evaluate of the internal auditors of both these banks which in turn reflects their overall performance. This is important in order to ensure that the implementation of banking procedures is in line with the banking principles. This is also to recognize the role of internal auditors in order to prevent frauds, to protect the interests of the employees and to restore public confidence in the bank. The study also aims to identify the audit categories, objectives, terms of reference and ways to overcome risks and problems. This evaluation is also capable to increase the effectiveness and reliability of its products. The study uses descriptive and analysis methodologies by depths of the audit practice of both the Faisal Islamic Bank of Egypt and Libya's Sahara Bank and their respective branches. The result of this study indicate that the Faisal Islamic Bank relies heavily on internal auditors and performs its audit procedures with great detail and objectivity. In its implementation, the Faisal Islamic Bank follow local, international and Sharia guidelines. At the same time, the Faisal Islamic Bank employs officials with high academic qualification such as those possessing master and doctorate degrees in their respective field of expertise. This helps them to maintain and implement the principles of the Bank in categorizing its programs, reviewing, evaluating and verifying the implementation of all its procedures. The study also finds that they have a high level of responsibility in determining vulnerability, abuse, restructuring proposals and to overcome difficulties. On the other side, the study finds that Libya Sahara Bank's internal audit is not carried out in an effective manner and its not in line with current banking developments, either in methodology or monitoring procedures during the auditing process. The study also finds that there was no effort on the part of the Libyan Sahara Bank to establish fixed guidelines when conducting the evaluation.