Al-Furqon: Jurnal of Islamic Economics, Management and Finance
Al-Furqon: Journal of Islamic Economics, Management and Finance is a scientific journal that focuses on the development and dissemination of academic studies in the fields of Islamic economics, Sharia management, and Islamic finance. This journal serves as a platform for academics, researchers, and practitioners to publish research results, conceptual thinking, as well as empirical studies that contribute to the strengthening of theory and practice in economy based on Islamic values. The scope of discussion in this journal includes, but is not limited to, Sharia economics, Islamic banking and finance, Sharia-based business management, zakat, waqf, as well as contemporary issues relevant to the development of the global halal industry. By prioritizing scientific standards and a rigorous peer-review process, Al-Furqon is committed to becoming a credible and high-quality academic reference in supporting the advancement of knowledge in the field of Islamic economics and finance.
A QUALITATIVE ANALYSIS OF THE EFFECTIVENESS OF SHARIA AUDIT IN REDUCING COMPLIANCE RISK IN INDONESIAN ISLAMIC COMMERCIAL BANKS
This study is motivated by the high level of compliance risk in the operations of Islamic banks, which has the potential to cause violations of Sharia principles and reduce public trust. The focus of this study is the effectiveness of Sharia audit in reducing compliance risk. The research question is directed at examining the extent of the role of Sharia audit and the factors influencing its effectiveness. This study employs a descriptive qualitative approach with data collection techniques through literature review sourced from scientific journals, regulations, and related documents. The results show that Sharia audit plays an effective role in minimizing compliance risk through the implementation of risk-based auditing, strengthening internal control systems, and synergy between internal auditors and the Sharia Supervisory Board. However, the effectiveness of Sharia audit is still influenced by limited human resources, the complexity of Islamic financial products, and the lack of standardized audit frameworks.
Sharia Audit, Compliance Risk, Islamic Banking, Audit Effectiveness, Sharia Governance
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CHALLENGES AND STRATEGIES OF SHARIA AUDIT IN THE MODERN BANKING INDUSTRY: A STUDY OF BANK SYARIAH INDONESIA PEKANBARU BRANCH
The rapid development of modern banking systems has created a complex environment in which maintaining sharia compliance is increasingly challenging, particularly within highly dynamic and technology-driven operational practices. This condition raises critical questions regarding how sharia audit is implemented in practice, what challenges are encountered, and what strategies can be applied to maintain its effectiveness. This study focuses on exploring these issues within the context of Islamic banking operations in Pekanbaru, aiming to understand real conditions beyond theoretical expectations. A qualitative descriptive method was applied using literature review as the primary data source, supported by contextual observations of banking activities. The analysis reveals that sharia audit practices are structurally established; however, they still face challenges related to human resource competency, technological adaptation, and operational pressure. In addition, differences in interpretation and varying levels of understanding among employees contribute to inconsistencies in implementation. Strengthening auditor competence, improving communication, and integrating technology emerge as essential strategies to enhance audit effectiveness. Overall, sharia audit plays a crucial role not only in ensuring compliance but also in maintaining institutional trust and sustainability within a rapidly evolving financial environment.
Sharia Audit, Islamic Banking, Compliance, Strategy, Modern Finance
Sharia Compliance Audit Analysis of Musyarakah Financing Products in Islamic Banks
The global Islamic finance industry has recorded significant asset growth, reaching USD 5.4 trillion by 2024. In Indonesia, Musyarakah financing products are the main contributor, accounting for 48.93% of total financing distribution. However, the complexity of profit-sharing contracts presents serious challenges in terms of sharia compliance and risk management. This study aims to analyze the sharia compliance audit mechanism for Musyarakah products, referring to POJK No. 2 of 2024 and the DSN-MUI Fatwa. Using a descriptive qualitative method, the findings reveal a gap between the theoretical concept of profit-and-loss sharing and actual banking practices, which tend to apply fixed profit-sharing schemes. This study recommends strengthening the dual competence of auditors and digitizing supervisory systems to maintain institutional integrity and achieve Maqasid al-Shariah.
Sharia Audit, Musyarakah, Sharia Compliance, Islamic Bank, POJK 2/2024, Maqasid al-Shariah
THE INFLUENCE OF SHARIA AUDIT ON CUSTOMER TRUST AT BANK SYARIAH INDONESIA RUMBAI SUB-BRANCH OFFICE
This study is motivated by the importance of customer trust in the sustainability of Islamic banks and the role of sharia audits in ensuring compliance with Islamic principles. The formulation of the problem in this study concerns how sharia audits influence customer trust in Islamic banking institutions. The research questions include: what role sharia audits play in improving sharia compliance, what factors influence customer trust, and how the implementation of sharia audits affects customer loyalty and the stability of fund collection. The method used in this research is a literature study by reviewing various sources such as scientific journals, books, and regulations related to sharia audits and Islamic banking. The findings indicate that sharia audits have a significant influence on customer trust, particularly through information transparency, clarity of profit-sharing mechanisms, and effective supervision by the Sharia Supervisory Board (DPS). In addition, service quality, bank reputation, and the level of sharia financial literacy also contribute to strengthening customer trust perceptions. However, the main challenge faced is the lack of standardized national sharia audit standards, resulting in differences in procedures and inconsistencies in audit results among institutions. Overall, the more optimal the implementation of sharia audits—not only administratively but also substantively in accordance with maqashid sharia—the higher the level of customer trust and loyalty, which ultimately has a positive impact on the stability and sustainability of Islamic banking operations.
Sharia Audit; Customer Trust; Sharia Compliance
The Role of Audit in Maintaining the Stability of the Islamic Banking System (BRK): A Literature Review
This study aims to analyze the role of Sharia audit in maintaining the stability of the Islamic banking system through a literature review approach. The research employs a qualitative method using a library research technique, drawing data from academic journals, books, and other relevant publications. The findings indicate that Sharia audit plays a strategic role in ensuring compliance with Islamic principles (sharia compliance), strengthening sharia governance, and enhancing the effectiveness of internal control systems and risk management. Furthermore, Sharia audit contributes to improving transparency, accountability, and public trust in Islamic banks, which ultimately supports the overall stability of the banking system. It also plays a role in enhancing institutional resilience to economic crises, improving operational efficiency, and supporting continuous evaluation within Islamic banking systems. However, the implementation of Sharia audit still faces several challenges, including limited auditor competence, the absence of integrated audit standards, and the suboptimal utilization of digital technology. 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 in supporting the sustainable stability of the Islamic banking system.
Sharia audit, banking stability, Islamic banking, sharia governance, risk management
EVALUATION OF INTERNAL AUDIT IN MINIMIZING NON-PERFORMING FINANCING TO SUPPORT GOOD CORPORATE GOVERNANCE IN ISLAMIC BANKS
This study aims to evaluate the role of internal audit in minimizing non-performing financing and its contribution to supporting the implementation of Good Corporate Governance (GCG) in Islamic banks. Non-Performing Financing (NPF) is one of the major risks that may affect the financial stability of Islamic banking institutions. Internal audit plays an important role in ensuring the effectiveness of the internal control system, maintaining compliance with Islamic principles, and managing financing risks. This research employs a descriptive qualitative method through a literature review of various scientific journal sources. The findings indicate that effective internal audit practices can enhance transparency and accountability, while also reducing the level of non-performing financing, thereby supporting a more optimal implementation of Good Corporate Governance in Islamic banks.
Internal Audit, Non-Performing Financing (NPF), Good Corporate Governance (GCG), Islamic Banking
THE TRANSFORMATION OF COLLABORATIVE LEADERSHIP AMONG MADRASAH PRINCIPALS IN BUILDING AN EXCELLE MADRASAH AT MI MOJOSARI
Collaborative leadership is a strategic approach for strengthening educational quality in Islamic educational institutions. This study aims to describe the transformation process of the madrasah principals ollaborative leadership at MI Mojosari and its impact on improving the quality of educational services. The study highlights how the principal establishes synergy with teachers and engages internal madrasah elements to reshape community perspectives toward the madrasah. The results show that collaborative leadership is implemented through building a teamwork culture, developing shared program agendas, and integrating both academic and non-academic activities aligned with student needs. The implementation increases teachers participation in madrasah activities and enriches students learning experiences comprehensively. As a result, a previously less favored madrasah has transformed into an institution that attracts greater attention and trust from the community. The study concludes that collaborative leadership effectively drives improvements in educational quality and supports character development for students.
Collaboratifve leadership, Madrasah Principical, Educational Quality
Kyai Leadership as the Guardian of Pesantren Identity in the Era of Digital Transformation
This study examines the kyai leadership model based on pesantren culture amid the challenges of digital transformation. The central problem revolves around how kyai sustain the authentic values of pesantren including religiosity, discipline, moral exemplarity, and communal solidarity while navigating rapid technological change and global cultural pressures. This research employs a qualitative library research approach, systematically drawing on books, peer-reviewed journals, and scientific articles relevant to pesantren leadership and Islamic educational management published predominantly within the last decade. The findings reveal that kyai leadership functions through an integrative model that harmonizes, traditional pesantren culture such as manners, independence, orderliness, and devotion with modern management principles, digital literacy, and formal curriculum development. Crucially, this integration preserves institutional identity while enabling pesantren to remain educationally competitive and socially responsive in contemporary Indonesia.
Kyai Leadership, Pesantren Culture, Digital Transformation, Islamic Education, Modernization
Analysis of the Implementation of Sharia Compliance Audit in Controlling Non-Performing Financing Risk at Bank Syariah Indonesia KCP Pekanbaru
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.
Sharia Audit, Islamic Banking, Financing Risk, Non-Performing Financing, Pekanbaru
QUALITATIVE ANALYSIS OF THE ROLE OF INTERNAL AUDIT IN CONTROLLING NON-PERFORMING FINANCING (NPF) IN ISLAMIC BANKS IN INDONESIA
This study aims to analyze the role of internal audit in controlling non-performing financing (NPF) in Islamic banking in Indonesia. The research employs a qualitative approach using a literature review method, drawing on various scientific sources such as journals, books, and relevant publications. The findings indicate that internal audit plays a significant role as a supervisory mechanism, an early risk detection tool, and an evaluator of the effectiveness of internal control systems and financing risk management. Internal audit also contributes to fraud prevention and ensures compliance with Sharia principles. The causes of NPF are influenced by internal factors such as weak financing analysis, low operational efficiency, and ineffective internal control systems, as well as external factors including inflation, economic growth, and customer characteristics. Strategies to control NPF include preventive measures, strengthening risk management, improving human resource quality, and resolving problematic financing through restructuring and gradual settlement approaches. The integration of internal audit with risk management has proven to enhance the effectiveness of financing control and reduce NPF levels. Therefore, internal audit plays a crucial role in maintaining the stability and performance of Islamic banking in Indonesia.
Internal Audit, Islamic Banking, Non-Performing Financing, Risk Management, Internal Control
ANALYSIS OF SHARIA AUDIT ON ISLAMIC BANKING COMPLIANCE AT BSI UNIVERSITAS ISLAM RIAU, PEKANBARU CITY
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.
Sharia Audit, Compliance, Islamic Banking, Governance, BSI UIR Pekanbaru
ANALYSIS OF SHARIA AUDIT IN REDUCING THE RISK OF NON-PERFORMING FINANCING AT BANK SYARIAH INDONESIA SUDIRMAN ATAS PEKANBARU
The development of Islamic banking in Indonesia has shown significant growth in recent years. However, this growth is still accompanied by challenges, particularly in managing financing risks that may lead to non-performing financing. This study discusses the role of sharia audit in reducing the risk of non-performing financing at Bank Syariah Indonesia KCP Sudirman Atas Pekanbaru, focusing on how sharia audit is implemented in the bank’s operational activities and how it contributes to controlling financing risks. The research questions are aimed at understanding the implementation of sharia audit, the factors influencing non-performing financing, and the contribution of sharia audit in minimizing these risks. This study employs a descriptive qualitative method supported by a literature review and field information to provide a deeper understanding of the issues examined. Data analysis was conducted systematically by interpreting various literature sources and the bank’s operational conditions. The findings reveal that sharia audit plays an important role in ensuring compliance with sharia principles, strengthening internal control systems, and helping detect potential risks at an early stage. In addition, non-performing financing is influenced by internal factors such as the accuracy of financing analysis and external factors such as customers’ economic conditions. Therefore, sharia audit makes a significant contribution to improving risk management quality and maintaining the operational stability of Islamic banks. Overall, sharia audit serves as an essential instrument in supporting the effectiveness of financing risk management.
sharia audit, financing risk, Islamic banking, risk management, non-performing financing
The Role of Sharia Audit in Improving the Quality of MSME Financing in the Culinary Sector in Pekanbaru
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.
Sharia audit, MSME financing, culinary sector, Islamic banking, financing quality, sharia compliance.
Optimizing the Function of Sharia Audit in Maintaining the Integrity of Islamic Financial Institutions: A Study on the National Zakat Agency (BAZNAS) of Pekanbaru City
This study examines the issue of how to optimize the function of Sharia audit in maintaining the integrity of Islamic financial institutions, with a focus on the Badan Amil Zakat Nasional (BAZNAS) of Pekanbaru City, amid the increasingly complex and dynamic development of the financial system. The main problem addressed is how the role of Sharia audit ensures institutional operational compliance with Sharia principles and what efforts can be made to enhance its effectiveness. The research questions include how the Sharia audit function is implemented in BAZNAS Pekanbaru as a zakat management institution, what challenges are encountered in its implementation, and what optimization strategies can be applied. This study employs a descriptive qualitative method with a literature review approach, analyzing various sources such as journals, books, and relevant academic literature. The findings indicate that Sharia audit plays a significant role not only as a technical supervisory tool but also as a guardian of values, ethics, and public trust in Islamic financial institutions, particularly in the management of zakat funds at BAZNAS Pekanbaru. Furthermore, the study identifies several key challenges in the implementation of Sharia audit, including limited human resources, rapid digital technological developments, and the complexity of zakat fund management. Therefore, optimizing the Sharia audit function is necessary through improving auditor competencies, strengthening regulatory frameworks, and utilizing more adaptive technologies. In conclusion, Sharia audit serves as a strategic element in maintaining the integrity and sustainability of Islamic financial institutions, especially within BAZNAS Pekanbaru.
Sharia Audit, Islamic Financial Institutions, Integrity, Sharia Compliance, Zakat Fund Management
Sharia Audit Evaluation of the Potential Non-Compliance in Murabahah Financing at Bank Syariah Indonesia
This research explores the role of sharia audit in assessing potential uncertainty (gharar) within murabahah financing practices at Bank Syariah Indonesia. The study focuses on the issue of possible deviations in the implementation of murabahah that could result in non-compliance with sharia principles. It addresses two main questions: (1) how murabahah is applied in Islamic banking practices, and (2) how sharia audit evaluates and mitigates potential uncertainties in these transactions. The study employs a qualitative approach using descriptive-analytical methods, drawing on literature from relevant journals, books, and established sharia standards. The results indicate that sharia audit has a significant role in identifying and reducing risks of uncertainty, particularly in areas such as asset ownership, pricing transparency, contractual processes, and penalty mechanisms.Nevertheless, the findings also reveal existing weaknesses in practice, especially when banks function solely as financing intermediaries without actual ownership of the goods. Therefore, enhancing the role of sharia audit is essential to ensure comprehensive compliance with Islamic principles.
Sharia Audit, Murabahah, Gharar, Islamic Banking, Compliance
Factors Influencing Students’ Interest in Pursuing a Career as a Sharia Auditor
This research endeavor seeks to investigate the determinants that shape students' proclivity to pursue a career as a sharia auditor within the context of Islamic Banking students at Sultan Syarif Kasim State Islamic University Riau. The variables under scrutiny encompass audit literacy, comprehension of Islamic banking principles, perceptions regarding the auditor profession, and learning motivation as independent variables, with career interest in the role of a sharia auditor being the dependent variable. This inquiry adopts a quantitative methodology, utilizing a survey instrument for data collection. The total population comprises 371 students, from which a sample of 79 respondents was derived employing the Slovin formula, incorporating a margin of error set at 10%. Data acquisition was facilitated through the distribution of questionnaires, followed by analysis via multiple linear regression techniques. The findings reveal that, when considered collectively, all independent variables exert a statistically significant influence on students' career interest in sharia auditing. In a partial analysis, it is evident that both learning motivation and audit literacy significantly impact career interest, whereas comprehension of Islamic banking and perceptions of the auditor profession do not demonstrate a noteworthy effect. Furthermore, the coefficient of determination (R²) calculated at 0.682 signifies that 68.2% of the variation in career interest can be elucidated by the variables investigated in this study, while the residual variance is attributable to other external factors not accounted for in the model. These results underscore the assertion that learning motivation emerges as the most preeminent factor affecting students' career interest, augmented by audit literacy as an additional contributing element. Consequently, it is imperative for educational institutions to bolster students' learning motivation and enhance their understanding of sharia auditing to fortify career interest in this domain.
learning motivation, sharia auditor, career interest
ANALYSIS OF AUDIT CHALLENGES IN FRAUD PREVENTION EFFORTS IN THE BANKING INDUSTRY AT BSI KCP SUDIRMAN ATAS, PEKANBARU CITY
This study aims to analyze the various challenges faced by auditors in detecting and preventing fraud in the Islamic banking industry, specifically at Bank Syariah Indonesia (BSI) KCP Sudirman Atas, Pekanbaru City. As one of the Islamic economic centers in Sumatra, Pekanbaru particularly the Sudirman Atas area faces unique risk dynamics alongside increasing banking digitalization. The research method used is descriptive qualitative with a literature review and case analysis approach.The results indicate that the main audit challenges include the complexity of sharia based transactions, limited auditor competency in information technology, and the risk of human error that creates loopholes for fraud. This study also relates these findings to recent disruptions in Islamic banking services suspected to be linked to cyberattacks and weaknesses in internal control systems. In conclusion, strengthening technology based auditing (continuous auditing), improving auditor competencies, and enhancing human resource integrity are key strategies for fraud mitigation in the future, particularly at BSI KCP Sudirman Atas Pekanbaru.
Islamic Internal Audit, Islamic Banking Fraud, Internal Control
NORMATIVE ANALYSIS OF SHARIA AUDIT BASED ON GOOD CORPORATE GOVERNANCE PRINCIPLES IN ISLAMIC BANKS IN PEKANBARU
This study aims to analyze the role of sharia audit in supporting the implementation of Good Corporate Governance (GCG) in Islamic banking and to identify challenges in its implementation. The background of this study is based on the importance of a supervision system that ensures all banking operations are conducted in accordance with sharia principles, transparency, accountability, and free from harmful practices. The research method used is a qualitative approach with library research design. Data were collected from scientific journals, books, and other relevant sources related to sharia audit and governance in Islamic banking. The analysis technique was descriptive by comparing and synthesizing findings from previous studies. The results show that sharia audit has a strategic role in maintaining sharia compliance, strengthening internal control systems, improving reporting transparency, and preventing fraud risks. The implementation of GCG principles in Islamic banks has been fairly good through the role of the Sharia Supervisory Board, internal audit, and regular reporting systems. However, several obstacles remain, such as limited human resources, potential conflicts of interest, multiple positions, and the lack of supervisory independence. Therefore, improving auditor competence, strengthening regulations, and integrating technology into the audit process are necessary to create more effective and sustainable governance in Islamic banking institutions.
Sharia Audit, Good Corporate Governance, Islamic Banking, Internal Control,
ANALYSIS OF THE ROLE OF INTERNAL AUDIT IN HANDLING NON-PERFORMING FINANCING AT BSI TEMBILAHAN
The increase in financing activities in Islamic banking in recent years has been accompanied by a rising potential for non-performing financing (NPF), thereby necessitating the strengthening of an effective supervisory function through internal audit. This study aims to analyze the role of internal audit in handling problematic financing at Bank Syariah Indonesia KCP Tembilahan, focusing on the implementation of internal audit, the mechanisms used in managing problematic financing, and the extent of internal audit’s contribution in reducing NPF risk. This research employs a qualitative approach with a descriptive method, where data collection is conducted through interviews, observations, and documentation, and then analyzed systematically to obtain a comprehensive understanding. The results of the study indicate that internal audit is conducted periodically as part of the internal control system, with a scope that includes evaluating financing processes, examining the completeness of administrative documentation, and assessing compliance with applicable operational standards. In addition, internal audit also plays a role in monitoring ongoing financing activities and identifying potential financing risks at an early stage. In practice, the handling of problematic financing is carried out through various measures such as restructuring, rescheduling of payments, and a persuasive approach to customers, all of which remain under internal audit supervision. Furthermore, internal audit also provides improvement-oriented recommendations to enhance the effectiveness of financing control. However, its implementation still faces constraints such as limited information from customers and human resource limitations, which affect the optimization of the supervisory function. Overall, internal audit has a significant contribution in supporting financing control and minimizing NPF risk.
internal audit, problematic financing, NPF, Islamic banking, internal control.
ORGANIZATIONAL PERFORMANCE MANAGEMENT TRANSFORMATION THROUGH HYBRID WORK IMPLEMENTATION IN THE DIGITAL ERA: EVIDENCE FROM MANDAILING NATAL STATE ISLAMIC COLLEGE (STAIN MANDAILING NATAL)
The development of digital technology has driven significant transformations in organizational work patterns, including within the public sector. One work model that has emerged in response to these changes is hybrid work, which combines working from home and working from the office. This study aims to analyze organizational readiness for the implementation of hybrid work from the perspective of Human Resource Management (HRM) in the digital era at Mandailing Natal State Islamic College (STAIN Madina). A quantitative descriptive approach was employed, with data collected through surveys and questionnaires. The findings indicate that STAIN Madina possesses the basic infrastructure necessary to support the implementation of hybrid work. However, readiness in terms of organizational culture, digital training, and performance management systems still requires further strengthening. These findings highlight the critical role of human resources in designing adaptive strategies to ensure that hybrid work models can be implemented effectively and sustainably. This study contributes to the development of HRM practices within government institutions in digital era.
Hybrid Work, Organizational Readiness, Human Resource Management, Digital Era, STAIN Madina
DIGITAL AUDIT OF ISLAMIC BANKING IN MANAGING TECHNOLOGY RISKS
Digital transformation in Islamic banking has significantly changed operational systems and audit practices. This study aims to analyze the role of digital auditing and technology risks in Islamic banks. The research employs a qualitative approach through a literature review of 22 scientific references. The findings indicate that digital auditing can improve efficiency, accuracy, and transparency through the use of data analytics and artificial intelligence. Furthermore, digital auditing enables real-time monitoring, thereby enhancing the effectiveness of internal controls. However, its implementation also faces various challenges, such as cybersecurity risks, regulatory limitations, and inadequate auditor competency. Therefore, strengthening the digital audit system through technology integration and improving the quality of human resources are essential to maintaining compliance with Islamic principles.
Digital Audit, Islamic Banking, Fintech, Technology Risk, Governance
Analysis of the Effectiveness of Internal Audit in Improving Sharia Compliance at BSI KCP Rumbai
The development of the Islamic banking industry in Indonesia requires an effective supervisory system to ensure compliance with Sharia principles. One of the key instruments in maintaining this compliance is internal audit. This study aims to analyze the effectiveness of internal audit in improving Sharia compliance at Bank Syariah Indonesia (BSI) Rumbai Branch Office. This research uses a descriptive qualitative method, with data collection techniques including in-depth interviews, documentation, and source triangulation. Informants were selected using purposive sampling, consisting of internal auditors, compliance officers, and operational employees. The results show that internal audit plays a strategic role in ensuring Sharia compliance, not only as a supervisory function but also as an evaluative and consultative function. The audit process is conducted systematically through the stages of planning, implementation, reporting, and follow-up. The effectiveness of internal audit is influenced by several factors, including auditor competence and independence, management support, internal control systems, and synergy with the Sharia Supervisory Board. In addition, non-technical factors such as organizational culture, internal communication, and the use of technology also contribute to improving Sharia compliance. However, several challenges remain, such as limited human resources and the increasing complexity of Islamic banking products. Therefore, continuous development of auditor competence and strengthening of the supervisory system are necessary to ensure optimal internal audit performance in maintaining integrity and Sharia compliance.
Internal Audit, Sharia Compliance, Audit Effectiveness, BSI, Islamic Banking
THE STRATEGIC ROLE OF INTERNAL AUDIT IN THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE AT PT. BANK SYARIAH INDONESIA
This study is based on the less-than-optimal implementation of Good Corporate Governance (GCG) in the Islamic banking sector, particularly regarding internal audit procedures as strategic partners and supervisory bodies. The main focus of this study is to examine how internal audit contributes to supporting the implementation of GCG and the challenges encountered in the process. The study specifically discusses the implementation of GCG principles, the functions of internal audit, and the challenges arising from the strategies applied. This research employs a descriptive qualitative method using secondary data obtained from annual reports, GCG reports, and relevant literature, which are analyzed through descriptive qualitative techniques. The findings of the study indicate that although the implementation of GCG at Bank Syariah Indonesia has reached the “good” category, it has not yet achieved optimal performance due to challenges related to merger process integration, transparency, and independence. Internal audit functions have not operated as effectively as expected because of digital risks, technological limitations, and operational efficiency issues. Although initiatives such as digital transformation and the development of a sharia-compliant ecosystem have been implemented, there is still a need to strengthen internal audit functions that are more risk-oriented, adaptive, and integrated in order to enhance the effectiveness and sustainability of GCG implementation.
Internal audit, Good Corporate Governance (GCG), Islamic banking, Bank Syariah Indonesia.
Analysis of Murabahah Financing Audit, Independence, and Competence on Audit Quality at Islamic Bank KC Ujung Batu
This study discusses the quality of audit in murabahah financing, focusing on how auditor independence and competence influence audit quality in Islamic banking institutions. The main problem addressed in this research is the inconsistency of audit quality in murabahah financing practices, which is suspected to be influenced by variations in auditor independence and professional competence. The research questions in this study are formulated to examine how murabahah financing audit practices are conducted, how auditor independence contributes to audit quality, and how auditor competence affects the reliability of audit outcomes. This study uses a qualitative descriptive method based on literature study, where data are collected from academic journals, books, and relevant previous research related to Islamic banking audit practices. The analysis is carried out by systematically reviewing, comparing, and interpreting various sources to obtain a comprehensive understanding of the studied variables. The findings indicate that audit quality in murabahah financing is strongly influenced by the level of auditor independence and competence, where both factors play a complementary role in ensuring accurate, objective, and reliable audit results. It is also found that limitations in either independence or competence may reduce the effectiveness of audit functions in maintaining compliance with Islamic principles. Therefore, strengthening these two aspects is essential to improve the overall quality of audit in Islamic banking institutions.
Audit Quality, Murabahah Financing, Auditor Independence, Auditor Competence, Islamic Banking
Islamic Social Enterprise for Sustainable Development: Insights from a Systematic Literature Review
This study aims to examine the role of Islamic Social Enterprise (ISE) in supporting sustainable development through a Systematic Literature Review (SLR) using the PRISMA framework. The study analyzes 87 scholarly articles obtained from various international databases, including Scopus, Web of Science, and Google Scholar. The findings indicate that ISE represents a hybrid model that integrates Islamic economic values such as zakat, waqf, and qardhul hasan with social entrepreneurship principles to simultaneously achieve economic, social, and spiritual impacts. The results further reveal that ISE contributes significantly to the achievement of the Sustainable Development Goals (SDGs), particularly in poverty alleviation, quality education, decent work, and reduced inequalities. However, its contribution to environmental dimensions remains limited and requires further strengthening. In addition, the main challenges in the development of ISE include regulatory constraints, limited human resource capacity, and the absence of comprehensive social impact measurement standards. This review confirms that ISE holds substantial potential as an inclusive and value-based instrument for sustainable development grounded in Islamic principles.
Islamic Social Enterprise, Sustainable Development, Maqasid al-Shariah, Social Finance