The Reality of Implementing Internal Sharia Audit and Ways to Improve It in Islamic Banks in Libya

Abstract

This study aims to assess the reality of implementing internal Sharia auditing in Islamic banks in Libya and explore ways to enhance and strengthen it. It also examines the challenges that may hinder the internal Sharia auditing process. To achieve this, the study adopts a descriptive-analytical approach, utilizing surveys to collect data from a sample of employees in Islamic banks in the city of Sorman. Appropriate statistical methods, including the T-test, were employed. The findings indicate that Islamic banks in Libya demonstrate a strong commitment to Sharia principles and that internal Sharia auditing plays a significant role in enhancing customer trust and ensuring the legitimacy and compliance of financial transactions. However, there remains ambiguity regarding the role of Sharia boards within the organizational structures. The study proposes several recommendations to enhance the effectiveness of internal Sharia auditing, such as clarifying the role of Sharia supervisory boards, developing a standardized procedural manual, and training specialized human resources.