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Q1 C: SHARIAH AUDIT AND COMPLIANCE  SUBJECT: SHARIAH AUDIT AND COMPLIANCE  PLEASE ANSWER ASAP

Q1 C: SHARIAH AUDIT AND COMPLIANCE  SUBJECT: SHARIAH AUDIT AND COMPLIANCE  PLEASE ANSWER ASAP

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q1 C: SHARIAH AUDIT AND COMPLIANCE 

SUBJECT: SHARIAH AUDIT AND COMPLIANCE 

PLEASE ANSWER ASAP

QUESTION ONE ABC Islamic Bank ("bank") has given its Islamic corporate financing facility to the following customers and in the periodic Shariah review exercise conducted, it was detected that during the credit evaluation stage of customers, no due diligence was conducted about the business activities of the customer. Customer Customer A Customer B Customer C Main business activity Tobacco production Importing liquor Pig farming It was also found that when processing financing disbursement to one corporate customer, credit administration unit discovered that commitment fees have been charged on the customer's unutilized financing amount. The Shariah review team found out that errors in the system-setting caused this incident. With reference to the above, answer the following questions: c) Assess two types of consequences that shall be faced by ABC Islamic Bank if there is an actual Shariah non-compliance event.
Transcribed Image Text:QUESTION ONE ABC Islamic Bank ("bank") has given its Islamic corporate financing facility to the following customers and in the periodic Shariah review exercise conducted, it was detected that during the credit evaluation stage of customers, no due diligence was conducted about the business activities of the customer. Customer Customer A Customer B Customer C Main business activity Tobacco production Importing liquor Pig farming It was also found that when processing financing disbursement to one corporate customer, credit administration unit discovered that commitment fees have been charged on the customer's unutilized financing amount. The Shariah review team found out that errors in the system-setting caused this incident. With reference to the above, answer the following questions: c) Assess two types of consequences that shall be faced by ABC Islamic Bank if there is an actual Shariah non-compliance event.
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