article · Journal of financial reporting & accounting
A systematic review of 46 research articles published between 2000 and 2020 across 23 journals examines scholarship on the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards. The evaluation highlights existing research gaps and identifies five key avenues for future study. These focus areas include the need for more empirical investigations, the adoption of alternative analytical approaches such as meta-analysis, and the inclusion of broader macroeconomic and microeconomic measurements. Further avenues involve investigating issues linked to the Covid-19 pandemic, alongside examining the role of central banks and providing constructive critique of existing standards. By analysing compliance, determinants, and the outcomes of adopting these standards, the body of work provides guidance to inform improvements in regulatory oversight and current institutional reporting practices within Islamic financial environments.
Standards set by the Accounting and Auditing Organization for Islamic Financial Institutions guide governance and reporting across Islamic finance. Synthesising two decades of literature helps regulators, central banks, and financial institutions understand compliance and adoption dynamics. Identifying gaps in empirical research and measurement techniques supports the ongoing refinement of financial reporting frameworks across multiple jurisdictions.
The review provides early-stage conceptual guidance for financial authorities, standard setters, and Islamic financial institutions seeking to refine reporting frameworks and compliance practices. Because the work is a retrospective literature assessment rather than a ready technology or operational tool, practical application requires standard-setters and central banks to translate the identified research gaps and measurement metrics into actionable regulatory policies and institutional processes.
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Purpose This paper aims to systematically review the existing studies for Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards which include different tracks of researches and then identify the gaps to propose opportunities for future research. Design/methodology/approach By adopting a systematic literature review approach, 46 papers that were published between 2000 and 2020 from 23 journals concerned with AAOIFI were selected for review and analysis. Findings The authors combine electronic searches to identify relevant studies using keywords such as “AAOIFI” or and “Islamic standards.” In light of the existing studies’ limitations, this paper derives and summarizes five leading future research tracks: identifies the research gaps in AAOIFI and then suggests that AAOIFI still requires more empirical analyses; identifies the alternative analytical methods as meta-analysis; identifies additional measurements for macro and microeconomics factors; identifies recent tracks as corresponding to Covid-19 pandemic; and future studies should consider the role of central banks and positive criticism for AAOIFI. Practical implications This analysis address the literature gaps on measuring compliance, determinants and consequences of AAOIFI adoption as this study serves as a guide for the researchers, regulators and Islamic financial institutions in research associated with this area. The findings would support AAOIFI, regulators and related authorities across jurisdictions with suggestions on improving the current AAOIFI practices. Originality/value This literature review is a historical record and guidance for researchers who seek to examine and explore several questions about AAOIFI. To the best of the authors’ knowledge, this is the first paper that applies systematic literature review over AAOIFI research field.
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DOI: 10.1108/jfra-06-2020-0170
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