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.