Integrating Islamic financial and audit governance for strengthening Merah Putih cooperatives in Indonesia

Tri Aji Pamungkas (Institut Agama Islam (IAI) SEBI)
Efri Syamsul Bahri (Institut Agama Islam (IAI) SEBI)
Darihan Mubarak (Universitas Mulawarman)
Muhammad Hakimi Mohd Shafiai (Universiti Kebangsaan Malaysia)
Reni Marlina (Sekolah Tinggi Agama Islam (STAI) Siliwangi Bandung)

Referensi Islamika: Jurnal Studi Islam
Vol. 4 No. 5 (2026): October

Purpose – This study aims to develop an empirically informed conceptual model that integrates these dimensions into a coherent governance framework. Design – A descriptive qualitative approach was employed using in-depth interviews, observations, and document analysis involving cooperative practitioners, a Sharia Supervisory Board, Sharia auditors, academics, and regulators. The data were analyzed through data reduction, categorization, thematic interpretation, and triangulation to identify recurring governance issues and relationships among the emerging themes. Findings – The findings identify five interconnected components: Sharia Governance, Internal Control System, Sharia Compliance Audit, Financial Transparency and Accountability, and Continuous Monitoring and Evaluation. These components were synthesized into the Integrated Sharia Audit and Sharia Financial Governance (ISAFG) Model, which positions Sharia compliance as a central governance principle linking decision-making, internal control, auditing, reporting, and continuous evaluation. Research Implications – This model provides a theoretical foundation for the development of a governance framework that can be tested in future research. Originality – The study contributes an empirically informed conceptual framework for strengthening Sharia-based cooperative governance.