The Impact of Professionalism (Itqan) on the Quality of Financial Reporting in Islamic Financial Institutions
DOI:
https://doi.org/10.58812/wsis.v4i10.3205Keywords:
Professionalism, Itqan, Financial Reporting Quality, Islamic Work Ethics, Sharia Financial InstitutionsAbstract
This study aims to examine the relationship between professionalism (itqan) and financial reporting quality in Sharia financial institutions in Indonesia. Employing a quantitative approach with an explanatory research design, data were collected from 85 respondents through structured questionnaires using a five-point Likert scale. Professionalism (itqan) was measured through professional competence, accuracy, responsibility, integrity, work discipline, and commitment to excellence, while financial reporting quality was assessed through relevance, faithful representation, comparability, verifiability, timeliness, understandability, and transparency. Data were analyzed using descriptive statistics, validity and reliability tests, regression diagnostics, and simple linear regression with SPSS version 25. The results indicate that professionalism (itqan) has a positive and statistically significant relationship with financial reporting quality, with a regression coefficient of 0.303, a t-value of 3.391, and a significance value of 0.001. The coefficient of determination (R² = 0.122) indicates that professionalism explains 12.2% of the variation in perceived financial reporting quality. These findings highlight the importance of integrating Islamic professional ethics with technical competence to strengthen financial reporting practices. The study contributes to Islamic accounting literature by positioning itqan as a distinct professional construct associated with financial transparency, reliability, and institutional accountability.
References
[1] O. J. Keuangan, “Sharia financial industry’s perpetual growth: OJK releases the 2025 Sharia Financial Development Report,” OJK Press Release. 2026. [Online]. Available: https://ojk.go.id/en/berita-dan-kegiatan/siaran-pers/Pages/Sharia-Financial-Industrys-Perpetual-Growth-OJK-Releases-the-2025-LPKSI.aspx
[2] I. A. S. Board, “Conceptual Framework for Financial Reporting,” IFRS Foundation, 2018. [Online]. Available: https://www.ifrs.org/issued-standards/list-of-standards/conceptual-framework/
[3] A. and A. O. for I. F. Institutions, “AAOIFI Conceptual Framework for Financial Reporting (Revised 2020),” Accounting and Auditing Organization for Islamic Financial Institutions, 2020. [Online]. Available: https://aaoifi.com/aaoifi-conceptual-framework-for-financial-reporting/?lang=en
[4] A. J. Ali and A. Al-Owaihan, “Islamic work ethic: A critical review,” Cross Cult. Manag. An Int. J., vol. 15, no. 1, pp. 5–19, 2008, doi: 10.1108/13527600810848791.
[5] R. Rini, “Financial reporting quality on Indonesia Islamic banks: An internal stakeholders perception,” Glob. Rev. Islam. Econ. Bus., vol. 2, no. 1, pp. 15–28, 2014, doi: 10.14421/grieb.2014.021-02.
[6] I. Budiyono and C. K. Sabilla, “Analysis of the influence of audit committee, Sharia supervisory board, and Islamic work ethic on the quality of Sharia bank financial statements in Indonesia,” AL-ARBAH J. Islam. Financ. Bank., vol. 3, no. 1, 2021, doi: 10.21580/al-arbah.2021.3.1.8066.
[7] A. F. Raju and R. Muhammad, “Factors that determine the quality of financial statements in Islamic financial institutions,” Pinisi Bus. Adm. Rev., vol. 4, no. 2, 2022, doi: 10.26858/pbar.v4i2.38503.
[8] Mediaty, G. T. Pontoh, N. Nagu, R. H. S. Rahmawati, A. A. Mas’ud, and R. H. Abdul Aziz, “Human competencies: Amplifying financial reporting quality in Indonesian local government,” J. Risk Financ. Manag., vol. 18, no. 8, p. 424, 2025, doi: 10.3390/jrfm18080424.
[9] S. H. Aldulaimi, “Fundamental Islamic perspective of work ethics,” J. Islam. Account. Bus. Res., vol. 7, no. 1, pp. 59–76, 2016, doi: 10.1108/JIABR-02-2014-0006.
[10] M. C. Jensen and W. H. Meckling, “Theory of the firm: Managerial behavior, agency costs and ownership structure,” J. financ. econ., vol. 3, no. 4, pp. 305–360, 1976, doi: 10.1016/0304-405X(76)90026-X.
[11] R. E. Freeman, Strategic Management: A Stakeholder Approach. Pitman, 1984.
[12] M. B. Zafar, A. J. Ali, and M. F. Abu-Hussin, “Exploring Islamic work ethic in the workplace: A systematic literature review,” Pers. Rev., vol. 55, no. 6, pp. 1441–1471, 2026, doi: 10.1108/PR-08-2024-0720.
[13] R. Rini, “The effect of audit committee role and Sharia supervisory board role on financial reporting quality at Islamic banks in Indonesia,” J. Econ. Business, Account. Ventur., vol. 17, no. 1, pp. 145–156, 2014, doi: 10.14414/jebav.v17i1.273.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Junaidi Junaidi, Yayah Ikhda Nevia, Nur Kholidah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
westscience.journals@gmail.com