CHALLENGES IN THE IMPLEMENTATION OF SHARIA AUDIT IN MAINTAINING SHARIA COMPLIANCE IN MODERN ISLAMIC BANKING

Abstract

This article discusses the critical issue of ensuring Sharia compliance in modern Islamic banking, which is facing increasing complexity in products and financial transactions. The main research question is: what are the key challenges in conducting Sharia audits and what viable solutions can be implemented to address them? This study employs a qualitative literature review method by analyzing recent academic journals and books. The findings reveal three main challenges: (1) the scarcity of auditors with dual competencies in Islamic law and modern finance, (2) the lack of standardized audit procedures across Islamic banking institutions, and (3) the potential moral hazard arising when the Sharia Supervisory Board (DPS) also serves in an advisory role. The proposed solutions include the development of specialized certification programs for Sharia auditors, harmonization of audit standards with international bodies such as AAOIFI, and the implementation of a robust internal control system supported by information technology. This study concludes that a proactive and technology-driven audit approach is essential for the sustainability of the Islamic banking industry.