Sharia supervision
In one sentenceMonitoring an institution's operations, contracts and products to verify that they comply with the Sharia rulings adopted by its Sharia board.
Simply put
It usually consists of a Sharia board of specialized scholars who issue resolutions and approve contracts and products, and an internal Sharia audit department that examines actual implementation and reports on it.
The accountant has a direct role in it: providing documents that prove the sequence of contracts (such as the bank owning the goods before selling them on Murabaha), calculating amounts that must be purified, and separating non-compliant income in the accounts.
Example
Before launching a new financing product, a bank presents the contract to its Sharia board, which approves it. After implementation, internal Sharia audit examines a sample of transactions to confirm the bank owned the goods before selling them to the client.
Don't confuse it with
Internal auditInternal audit examines controls, risks and compliance with policies in general, while Sharia supervision examines compliance with Sharia rulings specifically.