Development of Sharia Auditing in Indonesia: Opportunities, Structural Challenges, and Competency Frameworks

The rapid expansion of the Islamic financial industry in Indonesia necessitates a robust Sharia auditing framework to ensure compliance, transparency, and public trust. This study analyzes the evolutionary landscape, growth opportunities, and structural challenges of Sharia auditing in Indonesia, while formulating a comprehensive Sharia auditor competency framework. Utilizing a qualitative-normative research design, this paper examines primary statutory regulations, accounting and auditing standards (AAOIFI, PSAK 101–112, IAPI decrees), and contemporary peer-reviewed literature. The findings reveal that while legislative mandates and digital transformations present significant opportunities for expansion across banking and Islamic social finance, the field is constrained by structural bottlenecks. These include the lack of independent Sharia audit firms, regulatory fragmentation, and a dual knowledge asymmetry between religious scholars (lacking audit methodology expertise) and financial auditors (lacking deep Fiqh Muamalat mastery). To bridge these gaps, this study proposes an Integrated Sharia Auditor Competency Framework spanning four core dimensions: (1) Islamic Jurisprudence & Fiqh Muamalat Mastery, (2) Technical Audit Proficiency & Accounting Assurance, (3) Digital Governance & Data Analytics, and (4) Moral Accountability & Independence grounded in the principle of Amanah. Furthermore, a strategic implementation roadmap involving joint professional certifications (SAS), academic curriculum alignment, and automated audit tools is recommended to institutionalize Sharia auditing standards nationwide.