Abstract.

Fraud is one thing that is avoided in every business activity. The impact of fraudulent activity will be very damaging and systemic for the company. In research, stated that one way to minimize financial statements fraud is by prioritizing internal control function, namely the Sharia Supervisory Board in the Islamic finance or banking industry. The sharia business concept applies several good things in every practice of business activity, namely Siddiq, Amanah, Fathonah, and Tabligh. In conclusion, the company has done everything discussed above without realizing that they had practiced one of the sharia business systems or concepts that Rasulullah Muhammad SAW did in ancient times. By improving and consistent attitude of each company to continuously carry out activities included in the indicators of Fathonah, Amanah, Siddiq, and Tabligh, it is expected to effectively and efficiently reduce and even avoid one of the disgraceful acts, namely fraud financial statements