AAOIFI Issues New Auditing Guidance for Islamic Financial Institutions Country: Bahrain Category: Islamic Finance | Business & Economy | Islamic World Publication Date: November 8, 2026 The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has issued a new auditing guidance note aimed at improving the quality and consistency of independent auditor reporting across Islamic financial institutions. The newly released Auditing Guidance Note (AGN) 3, titled "Illustrative Auditor's Report", provides guidance on the structure and content of independent auditor reports and their application under AAOIFI's auditing framework. Replaces Previous Guidance AGN 3 supersedes the earlier AGN 2, titled "Auditor's Report". The updated guidance includes an illustrative independent auditor's report designed to reflect the requirements of AAOIFI's revised auditing and assurance standards. Second Phase of Standards Revision Completed According to AAOIFI, the issuance completes the second phase of its project to revise auditing standards for Islamic financial institutions and other institutions operating under Sharia principles and rules. Acting AASC Chairman Firas Hamdan said the new guidance reflects updated standards while providing a framework that can accommodate future developments and professional best practices. AAOIFI Secretary-General Omar Mustafa Ansari highlighted the organisation's commitment to improving the quality, consistency and effectiveness of auditing and assurance practices across the Islamic finance industry. Why It Matters AAOIFI standards are used as a reference by Islamic financial institutions, auditors, regulators and Sharia governance professionals in different jurisdictions. The new guidance is intended to support more consistent independent audit reporting and strengthen professional practices within the Islamic finance sector. Islam Global News – Islamic Finance Desk Source: Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).