Islamic corporate governance and financial statements fraud: A study of Islamic banks

Financial statement fraud (FSF) in Islamic banks is unethical because it generates incorrect information for the stakeholders (Anisykurlillah, Jayanto, Mukhibad, & Widyastuti, 2020; Obid Demikha, 2011). We identify some institutional factors, specifically corporate governance, as factors that can control FSF. Using sample of Indonesia, we found attributes bank’s Sharia Supervisory Board (SSB), such its expertise, number members, and meetings holds, reduce Besides, audit committee reputation external auditors, also help This research does not find any influence board commissioners’ structure toward Another finding three SSB used this research, most decisive controlling FSF each SSB’s expertise accounting, finance, or economics. suggest every should have experts those fields to complement legal fields.