ANALYSIS OF SHARIA AUDIT ON ISLAMIC BANKING COMPLIANCE AT BSI UNIVERSITAS ISLAM RIAU, PEKANBARU CITY

Abstract

This study aims to examine the role of sharia audit in ensuring compliance within Islamic banking institutions, with a particular focus on BSI UIR Pekanbaru as the contextual reference. The main issue addressed is the existing gap between the implementation of sharia principles and actual operational practices in Islamic banking. The research questions focus on how sharia audit affects the level of compliance and the factors that determine its effectiveness. This study employs a qualitative approach using a descriptive method based on a literature review of scientific journals, books, and relevant regulations.The findings indicate that sharia audit plays an essential role in improving compliance by ensuring that all banking activities are conducted in accordance with Islamic principles. In addition, the effectiveness of sharia audit is influenced by several factors, including auditor competence, management support, the role of the Sharia Supervisory Board, internal control systems, regulatory frameworks, and the organizational culture of compliance. The study also reveals that effective sharia audit contributes to strengthening good corporate governance, reducing the risk of non-compliance, and enhancing public trust in Islamic banking institutions, including at the operational level of BSI UIR Pekanbaru. Therefore, strengthening the implementation of sharia audit is crucial to ensure the sustainability and credibility of Islamic banking.