While the general perception in the Islamic finance industry is that Shariah Advisory work is more glamorous and interesting when compared to Shariah Audit, the latter is just as important.
The problem Shariah Auditors usually face is that no one likes to be audited. In many cases the auditees will incorrectly feel that the Shariah Auditors are looking for their mistakes, when in reality they are trying to enhance the overall Shariah compliance of the entity. Without Shariah Audit it is very difficult if not impossible to identify incidences of Shariah violations.
One of the Senior Scholars in the Islamic finance industry in KSA always advises Shariah graduates to get experience in Shariah Audit even if they want to work in Shariah Advisory as this will increase their overall understanding.
In my experience, usually those working in Shariah Advisory will have strong knowledge of the intricate and minute details of the Shariah structures, transaction documentation etc. On the other hand, Shariah Auditors are normally much better versed with regards to the end to end processes, operations etc.
Some institutions are solely concerned with getting a Shariah approval from a Shariah Advisor(s) for their product or service but do not have a robust Shariah Audit in place. Imagine an abbatoir getting a halal certificate for how they are going to slaughter but after the certificate is issued there are no on-going checks.
Furthermore, having the same individual who gave the Shariah approval, conduct the subsequent Shariah Audit is not the best Shariah governance practice.
Regulators in established Islamic finance markets have started giving more importance to Internal Shariah Audit in recent years. In future there is a possibility that even External Shariah Audit is made compulsory.
