The Major Difference Between the Functions of the Internal Audit

question 26

True/False

The major difference between the functions of the internal audit department of IFIs and the internal Sharī'ah audit department is that the former reports to the Shari'ah board while the latter reports to the audit committee.

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Definitions:

Basis

The amount paid for an asset or investment, used to calculate gain or loss for tax purposes.

Active Participation

Involvement in making management decisions and the right to make significant and bona fide contributions to the operating and financial management of an activity.

Material Participation

A taxpayer's active and regular involvement in the operations of a business to qualify for certain tax benefits.

Passive Activity

An economic activity in which the investor does not materially participate and often includes rental activities or limited partnerships.