Analysis of the Implementation of Sharia Compliance Audit in Controlling Non-Performing Financing Risk at Bank Syariah Indonesia KCP Pekanbaru

Abstract

The rapid growth of Islamic banking in Pekanbaru has drawn significant attention to financing risk issues, particularly the emergence of non-performing financing that may affect the stability and credibility of Islamic financial institutions. This condition raises an important concern regarding how Sharia compliance audits can effectively contribute to controlling and minimizing financing risks while ensuring that banking operations remain aligned with Islamic principles. The main focus of this study is to examine how Sharia compliance audits are implemented in Islamic banking practices in Pekanbaru, how they contribute to risk management processes, and how they help reduce problematic financing. This study employs a descriptive qualitative approach through a literature review by collecting and analyzing relevant academic sources, regulations, and previous studies related to Islamic banking and Sharia audit practices without involving statistical calculations. The findings indicate that Sharia audits play a crucial role in strengthening internal control systems, improving financing assessment procedures, enhancing transparency, and supporting the early detection of potential financing problems before they become more serious. In addition, Sharia audits contribute to improving compliance with Islamic principles, strengthening accountability, and encouraging more prudent decision-making in financing distribution. Overall, Sharia compliance audits serve as an important mechanism in maintaining financial stability and reducing financing risks in Islamic banking institutions in Pekanbaru.