AAOIFI CPAAGE study guide
AAOIFI CPAAGE · Work through your exam, one topic at a time.
The AAOIFI Certified Professional Accountant for Islamic Financial Institutions (CPAAGE) is a professional credential offered through the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the non-profit standard-setting body established in 1990 and registered in the Kingdom of Bahrain in 1991. AAOIFI describes itself as one of the most prominent international non-profit organizations supporting Islamic financial institutions, with its headquarters in Bahrain. The AAOIFI CPAAGE study guide has 4 sections and about 1,421 words.
01Shari'ah Standards: Contracts, Prohibited Elements, and Zakah
AAOIFI Shari'ah Standards codify contract mechanics for Islamic financial institutions. Candidates must know the anatomy of the main nominate contracts: murabaha (cost-plus sale requiring disclosure of cost and profit, ownership before sale, and no penalty profit), mudarabah (capital from one party, effort from the other, profit shared by agreed ratio, loss borne by capital provider absent misconduct), musharakah (joint capital and profit/loss sharing), ijarah and ijarah muntahia bittamleek (lease with transfer), salam and istisna' (forward and manufacture sales with their payment and specification rules), sukuk (asset-backed, not pure receivables), and takaful .
378 words, about 2 min02Accounting Standards: Recognition, Measurement, and Disclosure
AAOIFI Financial Accounting Standards (FAS) govern how Islamic financial institutions report. Key themes: substance over form , profit and loss allocation between the institution and investment account holders (IAH), and separation of the institution's own funds from restricted and unrestricted investment accounts.
361 words, about 2 min03Governance Standards: Shari'ah Supervision and Internal Controls
AAOIFI Governance Standards address the Shari'ah Supervisory Board (SSB) , its composition, independence, and reporting, plus internal Shari'ah review, audit, and risk management. Candidates must know the SSB's role: issuing fatwas and rulings, reviewing contracts, and issuing an annual Shari'ah compliance report.
342 words, about 2 min04Ethics Standards: Conduct, Conflicts, and Client Protection
AAOIFI Ethics Standards (the Code of Ethics for Islamic financial institutions) set expectations for integrity, objectivity, confidentiality, competence, and fairness. Candidates should know the framework: honesty and truthfulness in marketing and disclosure, avoidance of conflicts of interest , confidentiality of client information, fair treatment of clients including vulnerable parties, and accountability to Allah and stakeholders.
340 words, about 2 min