Reframing operational auditing in Islamic banks: a conceptual framework based on Maqasid Shariah and Islamic agency theory

Purpose This paper aims to propose a conceptual framework for operational auditing in Islamic banks by integrating Maqasid al-Shariah and Islamic Agency Theory. It aims to advance beyond conventional audit models focused solely on efficiency and compliance. Design/methodology/approach Using a theory-building approach grounded in systematic literature review, the paper synthesizes ethical and spiritual dimensions relevant to Islamic financial auditing. Findings The framework repositions auditors as ethical trustees (khalifah) accountable to both stakeholders and Allah. It reconceptualizes operational audits as value-based instruments that promote justice, trust and maslahah in line with Shariah principles. Research limitations/implications As a conceptual contribution, the framework is theoretical and requires empirical validation through future studies. Practical implications This model equips Shariah auditors and governance bodies with a holistic lens to assess ethical, spiritual and performance-related dimensions within Islamic financial institutions. Originality/value This study fills a theoretical gap by uniting Maqasid al-Shariah and Islamic Agency Theory into a unified audit framework – offering a novel approach to embedding ethical accountability in Islamic banking governance.