SHARIA AUDIT IN MAINTAINING COMPLIANCE AND TRANSPARENCY IN ISLAMIC BANKING AT BANK SYARIAH INDONESIA

Abstract

This study aims to analyze the implementation of sharia audits in maintaining compliance and transparency within Islamic banking institutions. The primary issues identified include the dual role of Islamic banks as both commercial entities and institutions operating in accordance with sharia principles, as well as the challenges encountered in sharia audit practices. This research employs a qualitative method using a literature review approach by analyzing various studies published in Sinta-accredited journals from 2014 to 2024. The findings indicate that sharia audits play a crucial role through the synergy between internal audits, which focus on operational monitoring, and external audits, which provide independent assessments. Factors influencing audit effectiveness include auditor competence, independence, and supportive corporate governance. However, three major challenges remain: the absence of nationally standardized sharia audit standards, the limited availability of competent sharia auditors, and weak legal certainty. This study concludes that strengthening professional standards, improving auditor competence through certification programs, and enhancing collaboration between the Sharia Supervisory Board and external auditors are essential steps toward improving audit quality in Islamic banking institutions.