CIPA Program AAOIFI Background 3 Introduction, Vision, and Mission - PowerPoint PPT Presentation

An Introduction to the CIPA Program

AAOIFI Background

3 Introduction, Vision, and Mission Introduction to AAOIFI Vision The Accounting and Auditing Organization for Islamic Financial Institutions To guide IF’s markets operation and (AAOIFI), established in 1991 and based in the Kingdom of Bahrain, is the leading financial reporting on Shari’ah international not-for-profit organization primarily responsible for protecting and principles and rules. To provide IF enhancing the integrity of the Islamic banking & finance industry through the markets with standards and development and issuance of standards in the areas of Shari’ah, Accounting, guidelines that can support the Auditing, Governance, and Ethics. Thus far, 100 standards have been issued in total growth of the industry. while several key standards are being developed on ongoing basis. Mission AAOIFI standards are adopted by central banks, regulatory authorities, and Islamic financial institutions in a number of countries, either on a mandatory basis or as basis of guidelines, across the world and which has, over the years, introduced a Standardization and harmonization progressive degree of harmonisation of international Islamic finance practices. of international Islamic finance AAOIFI is supported by numbers of institutional members, including central banks practices and financial reporting in and regulatory authorities, financial institutions, accounting and auditing firms, accordance to Shari’ah . and legal firms, from over 45 countries.

4 AAOIFI Areas of Work Standards Five disciplines are covered: Shari’ah, Accounting, Development Auditing, Governance, & Ethics Standards Development 01 Professional Two professional qualifications are offered: i) Development Certified Islamic Professional Accountant; and ii) & Training Certified Shari’ah Advisor & Auditor Certification of Compliance 04 02 Conferences Two International Conferences are held on an & Events annual basis since the last 15 years Certification Certifications of compliance to AAOIFI Standards Conferences & Events of offered mainly for Islamic Banking and Two International Conferences are Compliance Investment business software 03 held on an annual basis since the last 15 years

Standar St ndards ds Devel elopment opment Tec echni nical cal Boards ds & No. of St Standar ndards ds 5 Issue sued d til ill l Dat ate e (J (Jul uly 2018) 18) 58 A technical board responsible for issuing, reviewing and updating the Shari’ah standards. The board has the absolute power in this respect as it represents the main reference and authority for the Islamic finance Standards Issued industry worldwide, whose standards are widely applied globally. 33 + 6 A technical board responsible for issuing and reviewing the accounting Shari’ah Board standards and all related materials including guidelines, researches, interpretations, and other related scientific and professional products. Standards Issued 8 + 2 Accounting (and A technical board which shall be responsible to carry out development and review of governance standards and codes of ethics, and all related Auditing) Board materials including guidelines, researches and interpretations. Standards Issued Governance & Ethics 107 Board in total

Professional Development

7 AAOIFI’s Professional Qualifications Provides Expertise in AAOIFI Standards & Related Fields Certified Islamic Professional Accountancy Accountant (CIPA) Qualification Certified Shari’ah Advisor Shari’ah Qualification and Auditor (CSAA)

8 Total No. of CIPA and CSAA Fellows CIPA Fellows : 1000+ CSAA Fellows : 800+ 1800+ Fellows from over 50 countries Finding qualified human resources in the Islamic finance industry is regarded as one of the main challenges in this field. That is why AAOIFI, out of its belief in the fact that professional memberships play an important role in developing this industry, launched the first two professional certificates in the Islamic finance industry 20 years ago. Since the launching of these certificates in 2007 A.D., the number of Fellows have reached 1800 from over 50 countries, which has had a positive effect on their professional career to the extent that some of them have made their way among the most prominent figures of this field

9 33 Exam Cen enter ers s in in 2 26 Countries untries Around und th the W e World rld Malaysia Bahrain South Africa UAE Mauritania KSA Sudan Qatar Egypt Kuwait Libya Lebanon Tunisia Jordan Morocco Syria Algeria Turkey UK Pakistan Indonesia Sri Lanka Iraq Nigeria China Hong Kong

Why get the CIPA Qualification?

11 Why Become a CIPA Fellow? CIPA promotes Professional & Personal growth CIPA offers Powerful Learning Experience Highly specialized Islamic accountancy certification Based on AAOIFI standards which is a product of • • cumulative knowledge and experience of a team of as demanded by the employers in the global Shari’ah Scholars, professionals, consultants, and industry covering ~75 countries academicians, representing 20+ countries over a period Backed by AAOIFI – the leading international • of 25+ years standard-setting body for the Islamic banking & Provides valuable experience in the field of accountancy • finance industry through the ‘Practical Experience Requirement’ (PER) Globally recognized by Regulators, Islamic Financial • Encourages multi-disciplinary learning by including, in • Institutions, Professional Accounting Bodies, and addition to accounting, the Shari’ah Audit, Law, Training Centers Taxation, Risks, Capital Adequacy, and Governance topics

Introduction to the CIPA Revamping Process

13 CIPA Facts at a Glance CIPA first launched in : 2006 CIPA Revamp Period : 2015 - 17 CIPA is a professional Islamic Accountancy CIPA Fellows : 1000+ certification program CIPA Exam Centers : 30 CIPA Countries Covered : 22

14 Comparison with Old CIPA OLD CIPA NEW CIPA 1. Gap Analysis and No Yes Benchmarking (Benchmarked against 5 international qualifications) 2. Structure Single course Four modules English (Arabic to be 3. Language English and Arabic launched) 4. Average Study Duration 4 months 1.5 years 5. Study Textbooks AAOIFI Standards FAR, AAE, BRE, SS&SG* 6. Fellowship Requirement Examination Examination + PER** Report Yes (1 year unless exempted) 7. Practical Experience No ** * PER = Practical Experience Requirement FAR = Financial Accounting & Reporting AAE = Auditing, Assurance, & Ethics BRE = Business & Regulatory Environment SS&SG = Shari’ah Standards & Shari’ah Governance

15 The Numbers Behind the Effort No. of Team Size Work Hours 47 ~ 29,000 No. of No. of Days Meetings 1200 200+ No. of Pages Question Bank Edited from 3,000  1,600 2,000+ questions

16 The Face of the Revamped CIPA Financial Business & Accounting and Regulatory Reporting (FAR) Environment (BRE) Shari’ah Standards Audit, Assurance, & Shari'ah and Ethics (AAE) Governance (SS&SSG)

Details about the revamped CIPA certification

18 The CIPA Syllabus – FAR Module AAOIFI Financial Ijara and Ijara Musharaka and Accounting Murabaha Salam and Istisna Muntahia Mudaraba Framework Bittamleek Investments in Investment Investment in Investments in Investment Associate and Funds Real Estate Securities Accounts Subsidiary Accounting Segment IFS offered by Islamic Insurance Zakah Foreign Currency reporting conventional FI

19 The CIPA Syllabus – AAE Module Intro and Objectives Code of Ethics Internal Audit Types of Assurance of Audit Client Acceptance Audit Strategy and Risk Assessment Audit Evidence and Continuance Planning Using the work of Audit Conclusion Other Audit services an Expert and Reporting

20 The CIPA Syllabus – BRE Module Communication Forms and Business Business Market Forces Marketing within an Types of Environment Strategies Organization Companies Management Introduction to Sources of and Key Concepts Introduction to Risks within Funding and Credit Risk Administration of Law Tax Financial Management of a Company Institutions Operational Capital Liquidity Risk Market Risk and other Risks Adequacy

21 The CIPA Syllabus – SS&SG Module Ijara and Ijarah Shari’ah Trade based Equity based Investment Muntahia Fundamentals Contracts Contracts Sukuk Bittamleek Common Corporate and Shari’ah Islamic Equity Banking Takaful Shari’ah Supervisory Market Services and Governance Board other Solutions Internal Independent Shari’ah External CSR Audit/Review shari’ah Audit

22 Registration & Exam Schedule – May 2018 May 2018 Registration & Enrollment (R&E) Exam** Deadline 20 March 2018 FAR 7 May 2018 Registrations possible after deadline AAE but with late fee* • On Full Upfront Payment Option = 8 May 2018 USD 150 as late fees BRE • On Easy Payment Option = USD 50 per installment as late fees SS&SG 9 May 2018 * See together with CIPA Program Fees slide * * Please check with AAOIFI before registration for availability of Exam Centre in your respective city of residence