Sri Sulistyowati¹, Dalila Daud^2* and Eley Suzana Kasim²

¹Faculty of Islamic Business and Economics, Universitas Islam Sultan Agung (Unisula) Semarang,
PhD Student of Accounting Research Institute (ARI), UiTM Malaysia
²Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Negeri Sembilan, Negeri Sembilan, Malaysia and
Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia

ABSTRACT

This study examined the competency, independence, and advisory roles of internal Shariah auditors (ISAs) in Indonesian Islamic banks. Using a qualitative approach, it analysed 14 semi-structured interviews supported by audit charters and Shariah governance regulations. The findings reveal that ISA competency is constrained by uneven certification and limited Shariah-specific training, while auditor independence is weakened by reporting lines to executive management and limited involvement of Shariah Supervisory Boards (SSBs). The expanding advisory role further risks blurring assurance boundaries without clear governance safeguards. The study proposes an integrated competency framework and an independence architecture to strengthen Shariah certification, enhance SSB oversight, and safeguard auditor independence while supporting value-adding advisory roles.

Keywords:
Internal Shariah Audit
Competency
Independence
Shariah Governance
Islamic Banks
Indonesia