NORMATIVE ANALYSIS OF SHARIA AUDIT BASED ON GOOD CORPORATE GOVERNANCE PRINCIPLES IN ISLAMIC BANKS IN PEKANBARU

Abstract

This study aims to analyze the role of sharia audit in supporting the implementation of Good Corporate Governance (GCG) in Islamic banking and to identify challenges in its implementation. The background of this study is based on the importance of a supervision system that ensures all banking operations are conducted in accordance with sharia principles, transparency, accountability, and free from harmful practices. The research method used is a qualitative approach with library research design. Data were collected from scientific journals, books, and other relevant sources related to sharia audit and governance in Islamic banking. The analysis technique was descriptive by comparing and synthesizing findings from previous studies. The results show that sharia audit has a strategic role in maintaining sharia compliance, strengthening internal control systems, improving reporting transparency, and preventing fraud risks. The implementation of GCG principles in Islamic banks has been fairly good through the role of the Sharia Supervisory Board, internal audit, and regular reporting systems. However, several obstacles remain, such as limited human resources, potential conflicts of interest, multiple positions, and the lack of supervisory independence. Therefore, improving auditor competence, strengthening regulations, and integrating technology into the audit process are necessary to create more effective and sustainable governance in Islamic banking institutions.