| 8.1 | The Board or its audit committee, in coordination with the ISSC, must recommend to the general assembly the appointment, re-appointment, dismissal, or the remuneration of the firm after ensuring that the firm has been pre-approved by the Central Bank. | |
| 8.2 | The general assembly of the Islamic Financial Institution appoints, reappoints or dismisses the firm, and sets its remuneration, on an annual basis, in order for the firm to carry out its duties as specified in this Standard or as determined by the Central Bank and the HSA. | |
| 8.3 | The audit committee must ensure that the External Shari’ah Audit team members as a whole have the expertise stated in Article (7.1/d) and that at least two-thirds of the team members are qualified personnel in Shari’ah audit who meet the conditions stated in Article (7.3) before submitting the appointment recommendation. | |
| 8.4 | The IFI, any of its Board members, any ISSC member, or their relatives including their second-degree must not be shareholders in the appointed external Shari’ah audit firm. This is also applicable to the External Shari’ah Audit team. | |
| 8.5 | The IFI must determine the External Shari’ah Auditor’s terms of engagement in written contract, which at a minimum, provides that:
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| | a. | the External Shari’ah Auditor must meet with the Central Bank as deemed necessary for supervisory purposes. The Central Bank will determine whether the IFI will participate in such meetings; |
| | b. | the External Shari’ah Auditor bears no duty of confidentiality to the IFI with respect to any notification of meeting with the Central Bank required by this Standard, or the provision of any document or information required to be submitted to, or requested by, the Central Bank for supervisory purposes; and |
| | c. | the External Shari’ah Auditor must provide, upon the request of the Central Bank, access to any documents that support conclusions made in the external Shari’ah audit opinion.
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| 8.6 | The External Shari’ah Auditor or any of its Subsidiaries or Affiliates companies must not provide any consulting services or services other than External Shari’ah Audit scope that would jeopardize its objectivity or independence during the years of the assignment as an External Shari’ah Auditor. | |
| 8.7 | The External Shari’ah Auditor must not obtain any financial or in-kind consideration or benefits other than the contractual compensation/consideration for the External Shari’ah Audit work. | |
| 8.8 | The IFI must terminate the contract or dismiss the external Shari’ah audit firm if it is proven to be not in adherence to the relevant professional standards, lacks sufficient experience or independence, or there are supervisory observations regarding the firm from the Central Bank. In any case, the approval of the Central Bank must be obtained before terminating or dismissing the services of the firm. | |
| 8.9 | The IFI must rotate their external Shari’ah audit firm at least every 6 years, subject to the conduct of a procurement procedure. In addition, the IFI must rotate their external Shari’ah audit firm’s partner in charge of the audit every 3 years. | |