A COMPARATIVE STUDY OF INTEREST AND NON-INTEREST BANK AUDIT PRACTICE

This study titled "A Comparison of Interest and Non-interest Banks Audit Practice" examined the audit practice in Shariah and Conventional banks in Nigeria in the year 2023. The objective of the study is to compare the objectives, procedures and responsibilities of Shariah and Conventional audit. The problems encounter while conducting audit and the probable measure to remove the problems. The methodology of the study was field survey and questionnaires were used to collect data. The study revealed that Shariah audit is different from conventional audit but the difference is not wide as they both has sole objective which is providing an "opinion on the Financial Statements", it also revealed that the responsibilities of Shariah and Conventional auditors are entwined for they both focus on reporting an opinion that is reliable. The study also showed that apart from the specific differences that the two audits have due to different regulatory bodies, almost all the problems encounter by Conventional auditors, shariah auditors encounter them as well and also most of the measures to remove the problems while conducting both Shariah and Conventional audit are same except for the ones that are unique to either of the two audits. Based on this findings, the study recommends that there is need for a regulatory body of Shariah auditing in Nigeria, that Islamic banks should adopt similar techniques as conventional banks in managing problems, also there should have an increase in dialogue between Auditors and risk committees and lastly both Shariah and Conventional auditors need to have strong Internal controls, high level of compliance, exercise due professional care, have adequate staff resources and evidence collection, stop following conventional (Haram) on the part of Shariah audit, exercise appropriate level of professional skepticism and have proper accounting system.