Good Governance Based on Maqasid Al-Shariah to Enhance Financial Reporting Integrity
DOI:
https://doi.org/10.32939/0jsk1c48Keywords:
Good Governance, Maqasid al-Shariah, Financial Reporting Integrity, Trustworthiness, TransparencyAbstract
Purpose: This study aims to analyze the implementation of good governance based on sharia principles, particularly maqashid sharia, as an effort to strengthen the integrity of financial reporting. The study addresses threats to financial reporting integrity arising from conflicts of interest, information asymmetry, weak oversight, and opportunistic management behavior.
Design/Methodology/Approach: This study employs a qualitative approach using a descriptive literature review method. Secondary data were obtained from books, scientific articles, accounting standards, governance guidelines, regulations, and relevant documents concerning good governance, sharia principles, maqashid sharia, and financial reporting integrity.
Findings: The findings indicate that integrating the principles of transparency, accountability, responsibility, independence, fairness, and supervision with the sharia values of trust, justice, and benefit can strengthen the integrity of financial reporting. Implementation can be supported through stronger internal control systems, optimization of audit committees and internal audit functions, greater external auditor independence, effective sharia supervision, development of human resource competencies and ethical awareness, improved disclosure quality, and accessible violation reporting systems.
Research Implications: The study implies that good governance based on maqashid sharia can complement formal accounting and governance requirements by providing an ethical and value-based framework. Its implementation can reduce conflicts of interest and opportunistic behavior while strengthening accountability and stakeholder trust in financial reporting. These findings also provide a conceptual basis for organizations and policymakers to integrate sharia-oriented governance into financial reporting practices.
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Copyright (c) 2026 Muhammad Disyacita Tosari, Muhammad Wahyuddin Abdullah, Abdul Hamid Habbe
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