The Shariah Financial Accounting Standards: How they Prevent Fraud in Islamic Banking

Abstract

This study aims to investigate the influence of Shariah financial accounting standards, the independence of the Shariah Supervisory Board and Auditor Competency Shariah to the prevention of fraud in Islamic banks in Indonesia. Sampling using saturated sample or the entire population of as many as 48 people include auditors in Islamic banking and Islamic Supervisory Board analysis tool using regression analysis using F test and t test with SPSS ver.17.00. The results showed that the Shariah financial accounting standards, the independence of the Shariah Supervisory Board and Auditor Competency Shariah simultaneously affect the prevention of fraud in Islamic banks. Islamic financial accounting standards have significant effect on the prevention of fraud in Shariah banks. Variables such as independence of the partial Shariah Supervisory Board has no effect on the prevention of fraud in Shariah banks while Islamic auditor competence variables have partially significant effect on the prevention of fraud in Shariah banks.

Exchange Rate Volatility and Export Volume: The Case of Indonesia and its Main Trading Partners

“…Identifying sub-sectors or commodities that are very sensitive to such exchange rate movements will help the monetary authorities in maintaining macroeconomic balance. Our study ties with a number of recent studies (Broda and Romalis, 2004;Clark et al, 2004;Tenreyto, 2004;Byrne et al, 2007;Vovchenko et al, 2017;Thalassinos and Politis 2012;Thalassinos et al, 2010;2015;Suryanto and Ridwansyah, 2016;Fetai, 2015;Carstina et al, 2015;Miller and Choi, 2014;Anureev, 2017;Rupeika-Apoga and Nedovis Uraev, 2015) that have argued that exchange rate volatility have negative impact on trade. In their studies they estimated bilateral trade equations for each industry based on OLS regression or panel.…”

Audit Tenure and Quality to Audit Report Lag in Banking

“…the time interval between the date of the end of the financial year to the date indicated in the independent auditor's report, Total lag, i.e. the time interval between the date of the end of the financial year to the date of receipt of the financial statements of the publication by the capital market (Suryanto and Ridwansyah, 2016). Lee et al, (2009) state that the timeliness of financial reporting is a fundamental element of adequate financial statement records.…”

The Influence of Financial Knowledge, Control and Income on Individual Financial Behavior

“…Behavioral finance appeared to the surface along with the business and academic development, which started to reveal the aspect or element of behavior in finance and/or investment decision making. This phenomenon was much inspired by the increasing role of behavior as one of the determinants in buying and selling securities (Vovchenko et al, 2015(Vovchenko et al, : 2017El-Chaarani, 2014;Suryanto and Ridwansyah, 2016;Anureev, 2017;Fetai, 2015). Pompian (2006) explained that behavioral finance is divided into macro and micro behavioral finance.…”