FACTORS AFFECTING SHARIAH AUDIT QUALITY IN ISLAMIC BANKING (Comparative Study of Islamic banking in Indonesia and Malaysia in 2017-2020)
Keywords:
sharia audit quality, sharia supervisory board size, audit committee size, audit committee meeting frequency, public accounting firm reputation, auditor industry specialization and audit delay
Abstract
This study aims to determine the differences in the quality of sharia audits in Islamic banking in Indonesia and Malaysia based on the size of the sharia supervisory board, the size of the audit committee, the frequency of audit committee meetings, the reputation of public accounting firms, the specialization of the auditor industry and audit delays in Islamic banking in Indonesia and Malaysia during 2017-2020. This study uses quantitative data with the Mann Whitney U-test method. The results showed that there were differences in the quality of sharia audits in Indonesian and Malaysian Islamic banks based on the size of the sharia supervisory board, the reputation of public accounting firms, the specialization of the auditor industry and audit delays.
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References
Regulation
SAK SYARIAH (2022)
Constitution Number 21 of 2008
Bank Indonesia Regulation No.6/24/PBI/2004
Regulation Authority Service Finance No.55/PJOK.04/2015
AAOIFI and GSIFI Regulations (2003)
Letter Circular Authority Service Finance No. 10/SEOJK.03/2014
Bank Indonesia Circular Letter No.15/15/2013
Bank Indonesia Regulation No. 11/3/PBI 2009
BNM/RH/ED Regulation 028-7
BNM/RH/PD Regulation 028-100
BNM/RH/GL Regulation 001-1
BNM/RH/PD Regulation 035-5
Central Bank of Malaysia Act 2009
Regulation Authority Service Finance No.14/PJOK.04/2022
BAPEPAM No. KEP-346/BL/2011
Journal and Thesis
Agustin Nengsih, T., Subhan, M., & State Islamic Sultan Thaha Saifudin Jambi, U. (2014). Analysis of JII Company Sharia Audit Quality. Journal Knowledge Accounting, 14(2),2021. https://doi.org/10.15408/akt.v14i1.22401
Algabry, L., Alhabshi, SM, Soualhi, Y., & Alaeddin, O. (2020). Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks. ISRA International Journal of Islamic Finance, 12(2), 171–193. https://doi.org/10.1108/IJIF-09-2018-0097
Hananto Andreas, H. (nd). Specialization Industrial Auditor As Predictor of Earnings Response Coefficient of Public Companies Listed on the Indonesian Stock Exchange.
Kemala Ratu, M., & Meiriasari, V. (2021). Comparative Analysis of Sharia Audits in Islamic Financial Institutions in Southeast Asia (Study of Literature in Indonesia, Malaysia, and Brunei) (Vol. 8, Issue 1).
Mardian, Q., & Mardiyah, S. (2015). Sharia Audit Practices in Institutions Finance Indonesian Sharia. Accountability , VIII No.1, 10–17.
Muhammad, R. (2018). Shariah governance for Islamic banking: What can be learned from Malaysia? (Vol. 1).
Naqiah , Z. (2022). Comparison of Audit Quality of Sharia Banking in Malaysia and Indonesia. LABATILA: Journal of Knowledge Islamic Economics,5(2). https://doi.org/10.33507/lab.v4i01
Nursihab , D. (2022). The Influence of KAP rotation, Audit Fee, Audit Tenure, Financial Performance, Audit Committee on Audit Quality. ATTITUDE, 6(2), 2022–2141. http://jurnal.usbypkp.ac.id/index.php/sikap
Riani, & Mardian, S. (2017). Dynamics Audit Quality in Sharia Banking in Indonesia. Journal of Islamic Accounting And Finance , 5(2),177–194.
Sanjaya, FB (2017). The Effect of Industrial Specialization Auditors, KAP Size, Audit Tenure, Family Ownership, and Quality of Profits on The Cost of Equity. Journal Accountancy business .
Sitompul, SM, Panjaitan, M., Wenny, ;, & Ginting, A. (2021). Effect of audit fees, auditor rotation, KAP reputation, audit delay on audit quality. in Journal Paradigm Economics (Vol. 16, Issue 3).www.bisins.liputan6.com
Triyanta, A. (n.d.). Implementation Obedience Sharia in Islamic Banking ( Sharia ) ( Study Comparison between Malaysia and Indonesia).
Yaacob, H. (2012). Issues and Challenges of Shariah Audit in Islamic Financial Institutions: a Contemporary View. 3rdInternational conference on Business and economic research(3rd ICBER 2012 ) PROCEEDING.
Yustriawan, NA, & Siregar, D. (2022). Sharia Audit Quality In Increase Performance Sharia Commercial Bank Finance . Journal of Scientific Islamic Economics , 8(02), 1247–1256. https://doi.org/10.29040/jiei.v8i2.4548
Book
Nurhasanah, S., Umiyati, & Senjani, YP (2021). Sharia Audit. Salemba four.
Sudaryono (2018). Methodology Research-Quantitative, Qualitative, and Mix Method. Edition Second. Rajagrafindo Persada.
Sugiyono (2012). Quantitative Qualitative and R&D Study Methods. Alphabet: Bandung
Website
About Sharia (ojk.go.id). Retrieved September 30 , 2022 at 13.10
Banking & Islamic Banking - Bank Negara Malaysia (bnm.gov.my). Retrieved October 2 , 2022 at 20:10 pm
Shariah Advisory Council - Bank Negara Malaysia (bnm.gov.my). Retrieved August 30 , 2022 at 10:10 p
Islamic Banks - Bank Negara Malaysia (bnm.gov.my). Retrieved August 30 , 2022 at 10:20 PM http://www.ikai.id/. (2022, October 5). audit committee . Http://Www.Ikai.Id/. Retrieved August 31 , 2022 at 10:10 p
SHARIA BANKING STATISTICS - MAY 2022.pdf (ojk.go.id). Accessed August 25 , 2022 at 09:00 p
AUDIT DELAY : Accuracy Time In Presentation Report Finance - Drs. J. Tanzil & Associates (jtanzilco.com). Retrieved October 5 , 2022 at 20:00 pm
Policy Taxes in Malaysia (2019). (news.ddtc.co.id). Retrieved October 5 , 2022 at 10:10 pm
SAK SYARIAH (2022)
Constitution Number 21 of 2008
Bank Indonesia Regulation No.6/24/PBI/2004
Regulation Authority Service Finance No.55/PJOK.04/2015
AAOIFI and GSIFI Regulations (2003)
Letter Circular Authority Service Finance No. 10/SEOJK.03/2014
Bank Indonesia Circular Letter No.15/15/2013
Bank Indonesia Regulation No. 11/3/PBI 2009
BNM/RH/ED Regulation 028-7
BNM/RH/PD Regulation 028-100
BNM/RH/GL Regulation 001-1
BNM/RH/PD Regulation 035-5
Central Bank of Malaysia Act 2009
Regulation Authority Service Finance No.14/PJOK.04/2022
BAPEPAM No. KEP-346/BL/2011
Journal and Thesis
Agustin Nengsih, T., Subhan, M., & State Islamic Sultan Thaha Saifudin Jambi, U. (2014). Analysis of JII Company Sharia Audit Quality. Journal Knowledge Accounting, 14(2),2021. https://doi.org/10.15408/akt.v14i1.22401
Algabry, L., Alhabshi, SM, Soualhi, Y., & Alaeddin, O. (2020). Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks. ISRA International Journal of Islamic Finance, 12(2), 171–193. https://doi.org/10.1108/IJIF-09-2018-0097
Hananto Andreas, H. (nd). Specialization Industrial Auditor As Predictor of Earnings Response Coefficient of Public Companies Listed on the Indonesian Stock Exchange.
Kemala Ratu, M., & Meiriasari, V. (2021). Comparative Analysis of Sharia Audits in Islamic Financial Institutions in Southeast Asia (Study of Literature in Indonesia, Malaysia, and Brunei) (Vol. 8, Issue 1).
Mardian, Q., & Mardiyah, S. (2015). Sharia Audit Practices in Institutions Finance Indonesian Sharia. Accountability , VIII No.1, 10–17.
Muhammad, R. (2018). Shariah governance for Islamic banking: What can be learned from Malaysia? (Vol. 1).
Naqiah , Z. (2022). Comparison of Audit Quality of Sharia Banking in Malaysia and Indonesia. LABATILA: Journal of Knowledge Islamic Economics,5(2). https://doi.org/10.33507/lab.v4i01
Nursihab , D. (2022). The Influence of KAP rotation, Audit Fee, Audit Tenure, Financial Performance, Audit Committee on Audit Quality. ATTITUDE, 6(2), 2022–2141. http://jurnal.usbypkp.ac.id/index.php/sikap
Riani, & Mardian, S. (2017). Dynamics Audit Quality in Sharia Banking in Indonesia. Journal of Islamic Accounting And Finance , 5(2),177–194.
Sanjaya, FB (2017). The Effect of Industrial Specialization Auditors, KAP Size, Audit Tenure, Family Ownership, and Quality of Profits on The Cost of Equity. Journal Accountancy business .
Sitompul, SM, Panjaitan, M., Wenny, ;, & Ginting, A. (2021). Effect of audit fees, auditor rotation, KAP reputation, audit delay on audit quality. in Journal Paradigm Economics (Vol. 16, Issue 3).www.bisins.liputan6.com
Triyanta, A. (n.d.). Implementation Obedience Sharia in Islamic Banking ( Sharia ) ( Study Comparison between Malaysia and Indonesia).
Yaacob, H. (2012). Issues and Challenges of Shariah Audit in Islamic Financial Institutions: a Contemporary View. 3rdInternational conference on Business and economic research(3rd ICBER 2012 ) PROCEEDING.
Yustriawan, NA, & Siregar, D. (2022). Sharia Audit Quality In Increase Performance Sharia Commercial Bank Finance . Journal of Scientific Islamic Economics , 8(02), 1247–1256. https://doi.org/10.29040/jiei.v8i2.4548
Book
Nurhasanah, S., Umiyati, & Senjani, YP (2021). Sharia Audit. Salemba four.
Sudaryono (2018). Methodology Research-Quantitative, Qualitative, and Mix Method. Edition Second. Rajagrafindo Persada.
Sugiyono (2012). Quantitative Qualitative and R&D Study Methods. Alphabet: Bandung
Website
About Sharia (ojk.go.id). Retrieved September 30 , 2022 at 13.10
Banking & Islamic Banking - Bank Negara Malaysia (bnm.gov.my). Retrieved October 2 , 2022 at 20:10 pm
Shariah Advisory Council - Bank Negara Malaysia (bnm.gov.my). Retrieved August 30 , 2022 at 10:10 p
Islamic Banks - Bank Negara Malaysia (bnm.gov.my). Retrieved August 30 , 2022 at 10:20 PM http://www.ikai.id/. (2022, October 5). audit committee . Http://Www.Ikai.Id/. Retrieved August 31 , 2022 at 10:10 p
SHARIA BANKING STATISTICS - MAY 2022.pdf (ojk.go.id). Accessed August 25 , 2022 at 09:00 p
AUDIT DELAY : Accuracy Time In Presentation Report Finance - Drs. J. Tanzil & Associates (jtanzilco.com). Retrieved October 5 , 2022 at 20:00 pm
Policy Taxes in Malaysia (2019). (news.ddtc.co.id). Retrieved October 5 , 2022 at 10:10 pm
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