Abstract
Public trust is closely related to the quality of the financial information which is presented by Zakat Management Organization (ZMO). The information will be useful if the information is able to support the community decision-making to entrust their zakat to ZMO. Sharia Supervisory Board (SSB) is a very important organ in the Islamic financial institutions (IFIs), SSB ensures all the objectives of Islamic governance are achieved, which includes directing, reviewing and supervising all the activities of IFIs in order to adhere to sharia. This study aims to determine the relation role of sharia supervisory board on the quality of financial reporting. The method which is used in this study is a survey method. The unit of analysis in this study is the ZMO in Indonesia. The respondents in this study are director, member of the supervisory board of sharia as well as Zakat collection and utilization. The hypothesis testing uses moment product moment correlation and coefficient of determination (R2). The result of this research is the relation of sharia supervisory board role with the quality of financial reporting is positive and very strong Public trust is closely related to the quality of the financial information which is presented by ZMO. The information will be useful if the information is able to support the community decision-making to entrust their zakat to ZMO as an institution which is considered mandate to receive, utilize and distribute zakat which is entrusted by community. The fundamental difference between Islamic financial institutions (IFIs) and conventional is in the existence of supervision over the implementation of Islamic law. Sharia Supervision is a process to ensure that financial products and services according to the principles of Islam. SSB is a very important organ in the IFIS, SSB ensures all the objectives of Islamic governance are achieved, which includes directing, reviewing and supervising all the activities of IFIs in order to adhere to sharia. Karim (2) argues that SSB is also involved in accounting policies and sharia reporting, it can be justified that the report could convince the reader that the financial statements are based on Islamic law. Quality financial statement is suitable with generally accepted accounting principles and meets the existing rules and SSB ensures the credibility of financial statements (3).
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