Islamic Accounting, Shariah Auditing, Islamic Financ

This research examines the effect of audit committee role and sharia supervisory board role on financial reporting quality. The data is provided from 33 Islamic banks in Indonesia that were taken by questionnaire from 173 employees (head of group, head of division, and internal auditor), audit committee members, and sharia supervisory board members. The questionnaire consisted of 51 questions. Research instrument contains 15 questions about audit committee role, with two dimensions (role related financial reporting quality and role related internal control); 12 questions about sharia supervisory board role, with two dimensions (control over process of new product development and control over bank activity); and 24 questions on financial reporting quality, with eight dimensions (timeliness, verifiability, completeness, representation faithfulness, neutrality, comparability, consistency and clarity). Data analysis used multiple regressions. The result of this research showed that audit committee role and sharia supervisory board role influenced financial reporting quality simultaneously and partially.

Islamic financial institutions (IFIs) have grown rapidly since the last few years. It raises the issue of shariah compliance in IFIs and the need for a new audit function, shariah audit. It's functions to ensure accountability of financial statements prepared by management and also ensuring shariah aspects are met perfectly by IFIs. Because if there is a failure in the implementation of shariah complience, stakeholders will loss their trust in the IFIs even Islam itself. Therefore, this study will discuss about the current practice of audit shariah in Indonesia. the discussion of shariah auditing practices are focused on four main issues shariah audit, i.e the framework, scope, qualifications and independence of auditors of sharia. This study was conducted using a survey method, in the form of questionnaires that measured with a likert scale to the three groups of respondents (SSB and internal auditors; external auditors, accounting academicians). These studies suggest that the audit practice of sharia in Indonesia has been going well Keywords: Shariah Audit, SSB, Stakeholder, IFIs ABSTRAK: Lembaga keuangan Syariah (LKS) telah berkembang pesat sejak beberapa tahun terakhir. Ini menimbulkan masalah sesuai Syariah di LKS dan kebutuhan baru fungsi audit, audit Syariah. Fungsi untuk memastikan akuntabilitas laporan keuangan disiapkan oleh manajemen dan juga memastikan Syariah aspek dipenuhi dengan sempurna oleh LKS. Karena jika ada kegagalan dalam pelaksanaan complience Syariah, stakeholder akan kehilangan kepercayaan mereka dalam Islam bahkan LKS sendiri. Oleh karena itu, studi ini akan membahas tentang praktek audit Syariah di Indonesia saat ini. Diskusi tentang syariah audit praktik berfokus pada empat masalah utama Syariah audit, yaitu kerangka, ruang lingkup, kualifikasi dan independensi dari auditor Syariah. Penelitian ini dilakukan menggunakan metode survey, dalam bentuk kuesioner yang diukur dengan Skala Likert kepada tiga kumpulan responden (DPS dan auditor internal, auditor eksternal, akademisi akuntansi). Studi ini menunjukkan bahwa praktek audit Syariah di Indonesia telah berjalan dengan baik. Kata Kunci: Audit Syariah, DPS, Pemangku Kepentingan, LKS

The various sources of zakat accounting are actually going to provide an answer to the question of whether the accounting capable of acting stints zakat management. Zakat accounting will provide information or data of a general nature modified technically-practical reorganized to be able to calculate the zakat that in fact contain a special purpose, such as the purification of wealth. The business organization is generally oriented to profit by using the entity (entity theory), which means that the company is a separate entity from its owners. While zakah accounting as a part of shari'a accounting affirms that a company or business organization is united with its owner, so that he has an obligation to pay zakat. Consequently, the business organization to change the orientation, from profit and stockholder-oriented to zakah-oriented, conservation of nature-oriented, and stakeholders-oriented.

Keywords: zakah, shari’a, accounting, business organization, profit
JEL Classification: H27, H71, I38, M41, N3

Recently, the Islamic banking grew up significantly. In Barabai, many the Islamic banks has been established and operated. The study focused on the perception of Islamic society toward the sharia compliance practices in Barabai district. The objective is to highlight their perception on it based on the financial reporting, product, services, GCG and environment focus with 5 sharia compliance approach. The contract, maqashid sharia, halal-haram, documentation and financial reporting. The study involved the different society like the lecturer, student, state-owned employee, civil servant, trader, etc. as the respondents. The primary data's are used by the questionnaire, while the secondary data's are literature survey. The sample is consisting of 114 respondents with random sampling. The respondents are chosen by accidental sampling. The study found that the perception of the societies toward the sharia compliance practices in the Islamic banks in Barabai is neutral with the average score 3.39.

This study aims to identify the impact of size, leverage, liquidity, tangibility, volume of capital and loss ratio on the financial performance of Sharia Insurance Companies in Indonesia as measured by Surplus On Contribution (SOC) from 2012 to 2014. The data analysis technique used is panel data regression with a significance level of 5% (0.05). Results of the data analysis showed that the right model used in this study is the Fixed Effects Model (FEM). Simultaneously the six variables significantly influence the good financial performance as measured by SOC. Partially; the size (0.0000) has a positive influence on the financial performance (SOC), whereas leverage (0.0167) and volume of capital (0.0000) negatively affect performance finance (SOC). Liquidity variable (0.8552), tangibility (0.5513) and loss Ratio (0.9861) did not have a significant effect on the financial performance (SOC). Abstrak Penelitian ini bertujuan untuk mengetahui faktor size, leverage, liquidity, tangibility, volume of capital dan loss ratio terhadap kinerja keuangan perusahaan-perusahaan asuransi syariah di Indonesia yang diukur dengan Surplus On Contribution (SOC) dari tahun 2012 sampai tahun 2014. Teknik analisis data yang digunakan adalah regresi data panel dengan tingkat signifikansi 5% (0,05). Hasil analisis data menunjukan bahwa model yang tepat digunakan dalam penelitian ini adalah Fixed Effect Model (FEM). Secara simultan keenam variabel tersebut berpengaruh signifikan terhadap kinerja keuangan baik yang diukur oleh SOC. Secara parsial, size (0,0000) memiliki pengaruh positif terhadap kinerja keuangan (SOC), sedangkan leverage (0,0167) dan volume of capital (0,0000) berpengaruh negatif terhadap kinerja keuangan (SOC). Variabel liquidity (0,8552), tangibility (0,5513) dan loss ratio (0,9861) tidak memiliki pengaruh yang signifikan terhadap kinerja keuangan (SOC).

Purpose -This paper analyses a case study of Islamic cooperative and the problems it faced in the Islamic financial system of Indonesia. Accordingly, it proposes a financing innovation, an enhanced structure of Shari`ah compliant hawalah financing scheme, which could improve operations of the cooperative. Discussions on factors contributing to successful implementation of the instrument are also included.

The development of international trade and the rapid growth in the global economy
led to the globalization of financial markets. Increasing fund demand of market
participants has increased the need for new financial resources and new financial
instruments. Rapid increase in oil prices since the end of the 20th century, it brought
capital accumulation in Islamic countries with rich oil resources, but these funds
could not be brought to the economy due to interest sensitivity. Islamic Financial
Institutions were established in order to accelerate the economic development by
using this corporate accumulation and new Islamic financial instruments have
been issued. These tools, which first appeared in Islamic countries, are now used all
over the world and the funds accumulated in these tools have reached important
levels. he Islamic financial system will continue to grow due to the fact that oil is
still the most important energy source in the world and the growing population
of the Muslim population.
The development of the Islamic finance system and the increasing demand for new
investment tools specific to this system have made Islamic finance an important
field of activity in the global financial sector. Today, the transaction volume for
these new investment instruments has reached significant levels not only in Muslim
countries but also in major financial centers around the world. This increased
interest brought with it the need for information on Islamic financial institutions
and instruments. These institutions, which are based on Islamic law, are subject to
a number of different regulations than traditional financial institutions. Therefore the necessity of establishing certain standards based on strict provisions has
emerged in the transactions of independent financial institutions. In this direction,
Accounting and Auditing Organization For Islamic Financial Institutions (AAOIFI)
was established in Bahrein in 1991. Today, AAOIFI develops and publishes
standards that regulate the functioning of the Islamic finance sector in the fields
of management, accounting, auditing, ethics and governance.
The global development of Islamic financial institutions has brought new expectations
of responsibility and accountability requirements. Therefore, new demands have
emerged at the point of inspection of these institutions. In this study, the subject of
Islamic Finance Auditing Standards (IFAS), which was published by AAOIFI and
regulates the audit procedures of Islamic financial institutions, has been examined.
In addition, the situation of these standards against International Standards on
Auditing (ISA) published by the International Auditing and Assurance Standards
Board (IAASB) established under the International Federation of Accountants
(IFAC) has been analyzed. In order to guide the practitioners, IFAS and ISA
were compared and similarities and differences were revealed. In this framework,
firstly, the concept of Islamic finance is emphasized and its development in the
world is examined. Then AAOIFI and the auditing standards it published were
revealed and studies in the literature were examined. In the last section, IFAS is
explained and compared with ISA, and the differences between them are revealed.

The paper reports the preliminary findings of an exploratory study on the responsibility and independence of syari’ah advisors. The report represents the early part of a more in-depth study on the role and expectations gap of the syari’ah advisors as perceived by the different group of stakeholders of Islamic banking practices in Malaysia. The objectives of this preliminary study are, first, it attempts to explore the perceived responsibility of the syari’ah advisors, and secondly, the study aims at determining the factors that may influence or increase the level of syari’ah advisors independence, from the perspective of the managers of the Islamic banks and conventional banks that offer Islamic banking services in Malaysia. 

The study indicates that the bank managers expect the syari’ah advisors to be more legally, socially and religiously responsible toward external stakeholders such as depositors, shareholders, regulatory agencies, customers and Muslims public. The study suggests that the bank managers view the legal, social and religious responsibility of the syari’ah advisors as equally important. The respondents also view the existence of Syari’ah Supervisory Board (SSB); the level of syari’ah background of the syari’ah advisors; the reputation of syari’ah advisors; the syari’ah advisors that are also members of the National Syari’ah Advisory Council; and non-executive role of the syari’ah advisors will significantly improve or increase the level of syari’ah advisors independence. Finally, the study provides evidence that the bank managers favor the syari’ah advisors to be appointed by and should report to the Central Bank (Bank Negara Malaysia). Thus, the implication of the study suggests an immediate need for a proper regulation on the role and function of the syari’ah advisors in order to give more credibility to the Islamic banking practices in Malaysia.

This study aimed at considering the current trends in the newly introduction of ethics into the accounting and auditing environments, where many financial organizations engaged in the developments of various ways and measures to ensure credibility, reputation and accuracy and ensure sustainability of the organizational structures especially in aspects of accounting and audition. Islam on the other hand, had already an existing ethics governing the entire financial services, this ethics solely depends on the original sources of Islamic law enforced on all financial practices, this principles where considered as an obligatory duties to be maintained by all Islamic financial institutions. Recently, there are developments in the Islamic financial services that resulted to the establishment of the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI). This institution and others of similar objectives have emerged to give best outlooks to Islamic financial institutions and earn the customers and workers confidence. This paper aimed at reviewing the Islamic ethics from the original sources of shariah as a guide for the Islamic accounting and auditing institutions with a view to see its practicable integration into all accounting and auditing environments.

In the aftermath of the global financial crisis and the financial stability forum of the IMF and the Basel III regime, effective liquidity risk management is denoted in this paper as a multiple equilibria between the challenge for compliance and the quest for Sharia'ah debt driven instruments is seen crucial for the sustainability of risk islamic banking. This paper looks towards the profitability of Islamic instruments and where their core risks. It also argues that the issue of sukuks and the compliance effort towards Basel laws are not helping islamic finance to provide practical solutions and directional credibility in promoting the role and scope of Maqasid al Shari'ah (Objectives of Shari'ah) and maslaha (Public Interest); governance and

Audit syariah merupakan tindakan dimana melakukan proses mengumpulkan dan menilai bukti untuk memberikan pendapat tentang informasi yang dikumpulkan bahwa kegiatan dan operasi suatu perusahaan memenuhi kriteria Syariah. Melihat dari perkembangan data melalui Statistik Perbankan Syariah (SPS) yang mana pengelolaan dalam bidang syariah dari tahun 2018-2021 begitu meningkat maka audit syariah merupakan hal yang sangat penting untuk diterapkan sesuai prinsip syariah, karena hal tersebut merupakan salah satu cara untuk menjaga dan memastikan integritas lembaga keuangan syariah dalam menjalankan prinsip syariah. Selain itu, audit syariah juga dapat memberikan assurance kepada stakeholder serta sangat dibutuhkan guna untuk merespon perkembangan industri keuangan syariah. Oleh karena itu dalam artikel ini sebuah upaya literature review dilakukan untuk mengkaji lebih lanjut mengenai sertifikasi bagi auditor syariah di Indonesia dan melihat seberapa sesuai kualifikasi auditor syariah dengan prinsip audit syariah. Metode yang digunakan dalam artikel ini yakni studi literatur, yang mana merupakan serangkaian kegiatan yang berkenaan dengan metode kepustakaan, penelitian terdahulu yang selanjutnya dikomparasi dengan teori-teori yang ada berkaitan dengan praktik audit syariah. Hal ini menunjukkan bahwasanya seorang auditor syariah di Indonesia hanya difokuskan pada DPS karena masih belum ada auditor syariah yang fungsinya sama dengan auditor independen pada lembaga keuangan konvensional, sehingga hanya DPS yang berwenang untuk melakukan audit syariah untuk menguji kepatuhan syariah pada LKS.