Date: 17-09-2019 Digital Publication Services : JABM | JAM | ABMR | ABMCS | BLOG

Faculty Research

BEST PRACTICE OF CONTROL ENVIRONMENT IN ISLAMIC BANK (STUDY AT THE BRANCH OF PT BANK SYARIAH MANDIRI MALANG, EAST JAVA, INDONESIA)

Detail
Author ETIK NURAENI
ID 202.710.328
Published Date 14-02-2017

Abstract

Best Practice of Control Environment in Islamic Bank (Study at the Branch of PT. Bank Syariah Mandiri, Malang, East Java, Indonesia) Istutik Bunyamin Abstrak Control environmental is a fundamental for effective internal control. Control environmental deals with management and governance functions at the highest level in the entities. Therefore, the Top Management should have control awareness and roles through his/her behavioral. Action and making a policy to create a good control environment. This qualitative descriptive study aimed to describe the facts of the control environment control in Islamic banks and the role of Top Management in the achievement of the effectiveness of the control environment. This study used primary data that obtained from the management of Branch of PT Bank Syariah Mandiri (BSM), Malang, East Java, Indonesia through in-dept interviews and secondary data through documentation of the annual report for year 2010-2014. This study found that in emplementing the control environment, Top Management of BSM has a big role in each policy making relatied with the commitment to implement and encourages to create the superior sharia value systems; the needs to move forward; the involvement of the board of directors, audit comminttees and the sharia supervisory board; corporate culture and management style by promoting integrity and honesty; delegation of authority and responsibility in accordance with the role and competence; have policies and training of human resources based on the applicable rules of Islam. Keyword: Environmental Control, Sharia Value Systems, Islamic Bank, Role of Top Management