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Internal Audit Function and Good Corporate Governance as Determinants of Fraud Prevention in Islamic Banking: A Case Study of Bank Syariah Indonesia Banda Aceh
Evy Iskandar, Ayumiati, Muhammad Farhan, Akmal Riza, Ivon Jalil
View Author Affiliations
- Evy Iskandar: Universitas Islam Negeri - Ar Raniry Banda Aceh, Indonesia
- Ayumiati: Universitas Islam Negeri - Ar Raniry Banda Aceh, Indonesia
- Muhammad Farhan: Universitas Islam Negeri - Ar Raniry Banda Aceh, Indonesia
- Akmal Riza: Universitas Islam Negeri - Ar Raniry Banda Aceh, Indonesia
- Ivon Jalil: Universitas Teuku Umar, Indonesia
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Abstract
This study examines the influence of the internal audit function and Good Corporate Governance (GCG) on fraud prevention within an Islamic banking institution. Employing a quantitative research design with multiple linear regression analysis, data were collected from employees of Bank Syariah Indonesia Banda Aceh through structured questionnaires. The findings reveal that both internal audit and GCG have a positive and statistically significant effect on fraud prevention, both partially and simultaneously. Among the two variables, GCG demonstrates a more dominant contribution in strengthening fraud prevention mechanisms. These results indicate that effective governance structures, supported by risk-based internal audit practices, enhance the bank’s fraud risk management system. This study contributes to the growing body of literature on fraud prevention, particularly within the context of Islamic banking institutions.
Keywords
Author Biographies
Evy Iskandar
Universitas Islam Negeri - Ar Raniry Banda Aceh
Islamic Banking Study Program, Faculty of Islamic Economics and Business, Universitas Islam Negeri - Ar Raniry Banda Aceh, Banda Aceh City, Aceh Province, Indonesia.
Ayumiati
Universitas Islam Negeri - Ar Raniry Banda Aceh
Islamic Banking Study Program, Faculty of Islamic Economics and Business, Universitas Islam Negeri - Ar Raniry Banda Aceh, Banda Aceh City, Aceh Province, Indonesia.
Muhammad Farhan
Universitas Islam Negeri - Ar Raniry Banda Aceh
Islamic Banking Study Program, Faculty of Islamic Economics and Business, Universitas Islam Negeri - Ar Raniry Banda Aceh, Banda Aceh City, Aceh Province, Indonesia.
Akmal Riza
Universitas Islam Negeri - Ar Raniry Banda Aceh
Islamic Banking Study Program, Faculty of Islamic Economics and Business, Universitas Islam Negeri - Ar Raniry Banda Aceh, Banda Aceh City, Aceh Province, Indonesia.
Ivon Jalil
Universitas Teuku Umar
Management Study Program, Faculty of Economics and Business, Universitas Teuku Umar, Meulaboh Regency, Aceh Province, Indonesia.
Article Identifiers
- Article Title: Internal Audit Function and Good Corporate Governance as Determinants of Fraud Prevention in Islamic Banking: A Case Study of Bank Syariah Indonesia Banda Aceh
- DOI: 10.59431/ijer.v5i2.602
- Publication Date: 2025-10-10
- Journal: Indonesian Journal Economic Review (IJER)
- Volume: 5
- Issue: 2
- Pages: 346–356
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Issue Information
Article Details
| Volume: | 5 |
| Issue: | 2 |
| Year: | 2025 |
| Published: | 2025-10-10 |
| Pages: | 346–356 |
| Section: | Articles |
Additional Information
How to Cite
Iskandar, E., Ayumiati, Farhan, M., Riza, A., & Jalil, I. (2025). Internal Audit Function and Good Corporate Governance as Determinants of Fraud Prevention in Islamic Banking: A Case Study of Bank Syariah Indonesia Banda Aceh. Indonesian Journal Economic Review (IJER), 5(2), 346–356. https://doi.org/10.59431/ijer.v5i2.602
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