<![CDATA[This study empirically investigates the effect of Sharia law on financial reporting practices among selected business organizations in Gusau metropolis, Zamfara State, Nigeria. The research addresses a critical gap in the literature by focusing on local, non-banking businesses in a region where Sharia law is formally integrated into the legal and regulatory framework. Using a descriptive survey design, primary data were collected from 120 business organizations through a structured questionnaire, and analyzed using SPSS version 18. The results reveal that Sharia compliance is a significant positive predictor of both the content and structure (B = 0.48, p < 0.001) and the transparency (B = 0.52, p < 0.001) of financial statements. Disclosure practices also significantly enhance financial statement quality (B = 0.32, p = 0.004) and transparency (B = 0.37, p = 0.001), while reporting challenges negatively affect transparency (B = -0.18, p = 0.027). Perceived benefits are positively associated with Sharia compliance in financial reporting (B = 0.41, p = 0.001). The regression models demonstrated good fit, with R² values ranging from 0.27 to 0.54, and all ANOVA results were statistically significant (p < 0.001). The study concludes that robust Sharia compliance and disclosure practices are pivotal for high-quality, transparent financial reporting, but practical challenges remain. It recommends the development of standardized Sharia-compliant reporting guidelines and targeted professional training to further enhance financial transparency and accountability in Zamfara State and similar contexts.]]>
