DIGITAL AUDIT OF ISLAMIC BANKING IN MANAGING TECHNOLOGY RISKS

Abstract

Digital transformation in Islamic banking has significantly changed operational systems and audit practices. This study aims to analyze the role of digital auditing and technology risks in Islamic banks. The research employs a qualitative approach through a literature review of 22 scientific references. The findings indicate that digital auditing can improve efficiency, accuracy, and transparency through the use of data analytics and artificial intelligence. Furthermore, digital auditing enables real-time monitoring, thereby enhancing the effectiveness of internal controls. However, its implementation also faces various challenges, such as cybersecurity risks, regulatory limitations, and inadequate auditor competency. Therefore, strengthening the digital audit system through technology integration and improving the quality of human resources are essential to maintaining compliance with Islamic principles.