The Role of Sharia Audit in Improving the Quality of MSME Financing in the Culinary Sector in Pekanbaru

Abstract

This study aims to analyze the role of Sharia audit in improving the quality of financing for Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector at Islamic banks in Pekanbaru through a literature review approach. The research employs a qualitative method using library research techniques, with data obtained from scientific journals, books, and other relevant publications. The results show that Sharia audit has a strategic role in ensuring compliance with Islamic principles (sharia compliance), improving the quality of financing management, and minimizing the risk of non-performing financing (NPF), particularly in the culinary MSME sector, which has dynamic business characteristics and rapid capital turnover. In addition, Sharia audit contributes to enhancing transparency, accountability, and public trust in Islamic banks. However, the implementation of Sharia audit still faces several challenges, including limited auditor competence, the absence of standardized audit frameworks, and the suboptimal utilization of digital technology. Furthermore, the characteristics of culinary MSMEs, such as simple financial records and fluctuating income, create additional challenges in the audit process. Therefore, strengthening efforts are required through improving the quality of human resources, developing regulatory frameworks, and integrating technology into the audit process. This study is expected to contribute to the development of more effective Sharia audit practices and support sustainable improvements in the quality of MSME financing, particularly in the culinary sector.