1. 11.1 The internal Shari'ah audit division or section undertakes Shari'ah audit and monitors IFI's compliance with Islamic Shari'ah. This is conducted through an annual plan to collect and assess evidence of IFI's activities and transactions to ensure their compliance with Islamic Shari'ah and ensure the adequacy of internal procedures and Shari'ah governance frameworks.
    
2. 11.2 The Board should appoint a Shari'ah controller to serve as head for internal Shari'ah audit division or section.
   The head for internal Shari'ah audit division or section must:
   1. be Muslim,
   2. have a university degree in Islamic Shari'ah, or relevant specializations,
   3. have a professional certificate in Shari'ah and Islamic Banking Audit from one of the organizations that support Islamic Finance like the Accounting and Auditing Organization for IFIs (AAOIFI) and the General Council for Islamic Banks And Financial Institutions (CIBAFI). It is also preferable to have a professional certificate in auditing issued by an international organization,
   4. have an experience of 10 years (at least), as a minimum, in the field of Shari'ah audit,
   5. not have been sentenced by a court in crimes related to honor or honesty, or sentenced by imprisonment, and
   6. have strong command of English and reasonable commend of Arabic.
       
3. 11.3 The head of internal Shari'ah audit division or department shall report to the Board. The head of internal Shari'ah audit division or section shall submit the reports to the ISSC for resolutions on Shari'ah matters mentioned in his/her reports. He/She shall then report with the ISSC resolutions to the Board's audit committee for the implementation of their content and follow-up of their requirements.
    
4. 11.4 The internal Shari'ah audit division or section submits its reports to the ISSC and to the Board audit committee biannually (at minimum)².
    
5. 11.5 The internal Shari'ah audit division and the internal audit division must coordinate and exchange their findings and reports.
    
6. 11.6 In matters related to promotions, bonus, performance assessment, and removal, internal Shari'ah audit division or section head and staff shall not report to the senior management they are auditing, but to the Board, through the audit committee, and in consultation with the ISSC.
    
7. 11.7 Internal Shari'ah audit division or section staff shall not assume any executive powers or responsibilities related to the businesses, activities, and contracts that may be audited by them.
    
8. 11.8 Internal Shari'ah audit division or section must carry out its duties in line with specified work procedures.
    
9. 11.9 The internal Shari'ah auditor must meet the requirements mentioned in (11.2) above, except for the condition of experience; where the internal Shari'ah auditor must have a minimum practical experience of five years in Shari'ah internal audit.
    
10. 11.10 Internal Shari'ah audit division or section shall carry out the following duties:
     
    1. Development of internal Shari'ah audit manual, and to undertake review and update of the manual on a regular basis.
        
    2. Prepare the annual Shari'ah audit plan, which must be approved by the ISSC in coordination with the audit committee, while upholding the best practices in this process (e.g. Risk based Shari'ah Audit ).
        
    3. Undertake assessment of businesses and activities of IFI to ensure the IFI's compliance with Islamic Shari'ah.
        
    4. Assess effectiveness of the internal Shari'ah supervision to ensure that the IFI's compliance with Islamic Shari'ah.
        
    5. Ensure that the products, services forms, contracts, agreements, activities and transactions execution procedures, and other related matters are approved by ISSC.
        
    6. Ensure the IFI's branches, its internal and external departments, and affiliates comply with Islamic Shari'ah.
        
    7. Conduct regular field audit to the IFI's internal and external departments, and branches (if any).
        
    8. Prepare internal audit forms and programs required for conducting inspection, and to verify and documents the sound execution of transactions in light of the ISSC's fatwas and HSA's resolutions.
        
    9. Conduct meetings with IFI's departments and branches to discuss the Shari'ah observations and request putting in place appropriate measures to prevent recurrences of similar issues, and in cooperation with relevant entities inside the IFI.
        
    10. Prepare a report of the outcomes of the Internal Shari'ah audit.
         
11. 11.11 The internal Shari'ah audit must not be outsourced to external entities. The internal Shari'ah audit division may be assisted by additional external bodies after the approval of the CBUAE.
     

² The frequency of reports submitted by the internal Shari'ah audit division or section depends on the size and nature of the IFI's works, which might require submitting more reports