Purpose: The paper examines auditors’ experiences with corporate governance (CG) in general and
audit committees (ACs) in particular in the setting of a Polish two-tier board system and a capital
market characterized by high ownership concentration, which therefore extends the research on
CG practices of an economy beyond the well-researched Anglo-American model.

Methodology: This study adopts a qualitative research approach by using interview data from
fifteen interviews with auditors working with large publicly-listed companies in Poland to examine
the relationships among auditors, Audit Committees, and CG.

Findings: The auditors indicate that the CG environment has changed. However, the institutionalization
of an AC in Poland generally is the subject of coercive isomorphic pressures, which lead
to its decoupling and transition toward a ritualistic role. Moreover, auditors report only some
reliance on CG information in the planning phase and none in the field-testing or review phases.

Originality: The findings differ from those of prior studies conducted predominantly in the USA
and the UK, in which auditors reported far greater reliance on CG in all phases of the audit process.
The two possible reasons for this difference in findings could be the different development stages
between capital markets and different CG systems.

Purpose: This study is aimed at analyzing the influence of the size of the board of directors, audit committee, institutional ownership and managerial ownership on the fnancial performance of manufacturing companies listed on the Indonesia Stock Exchange.

Methodology: The study analyses 156 Indonesia frms listed on the Indonesia Stock Exchange using linear regression analysis.

Findings: The results indicated that the size of the board of directors has a positive effect on fnancial performance, while the size of the audit committee, institutional ownership and managerial ownership has no effect on the fnancial performance. While on the simultaneously testing, it showed that the size of the board of directors, audit committee size, institutional ownership and managerial ownership influence the fnancial performance.

Research limitations/implications: The research has been limited to the manufacturing sector of Indonesian companies and the internal mechanism of corporate governance. The study suggests considering an external mechanism of corporate governance as predictor variables.

Originality: The study adds to the literature of corporate government and frm performance in emerging countries. The study implies that corporate governance mechanism for audit committee, managerial ownership and institutional ownership do not enhance company performance. The average size of an audit committee just to fulfll the regulation. Corporate governance mechanism that improve fnancial performance is size board director. Improvement in board performance as board size increase has positive impact that enhance fnancial performance of company.

Purpose: This paper attempts to examine the meaning of professionalization, the conditions required for professionalization and whether internal auditing can be recognized as a profession. The paper makes use of study results in the fi eld of internal auditing conducted in Europe and the USA, as well as Andrew Abbott’s theory on the system of professions. Professions have common characteristics which differentiate them from other occupations. These characteristics were used to determine the criteria for evaluating the professionalism of internal auditing. The conducted analysis indicates that presently internal auditing cannot be regarded as an independent profession.

Methodology: Study results (quantitative and qualitative) in the fi eld of internal auditing were used in the analysis.

Findings: The conducted analysis indicates that presently internal auditing cannot be regarded as an independent profession.

Research limitations: Only a selection of research studies conducted in the USA and a few European countries were used, which limits the cognitive value of the analysis.

Originality: The paper presents an overview of conducted research studies and gives an evaluation of the current state of professionalization of internal auditing.

Purpose: Empirical results about the direct relation of knowledge leading to fi nancial performance at a firm is dispersed. This study aims to examine the impact intellectual capital (IC) has on fi rm performance in Polish and Dutch listed firms.

Methodology: Quantitative data is collected based on audited annual reports from the top 20 companies listed at the Warsaw Stock Exchange and Amsterdam Stock Exchange between 2007 and 2011. IC is measured using the VAIC methodology with its individual elements of HCE, SCE, and CEE. Direct relations between ICE, HCE, and SCE and fi ve measures of fi rm performance are statistically analysed.

Results: The results suggest that there is a direct positive relationship between ICE and fi rm performance of Polish and Dutch listed fi rms, particularly with ROA, ROE, EP, and to a lesser extent with ATO. Firms listed in Poland provide a stronger positive ICE relation to ROA and ROE where fi rms listed in the Netherlands provide a stronger positive ICE relation to EP. Regarding individual elements, HCE relates highly positive to ROA, ROE, and EP where SCE fi nds only partial negative relation with ATO.

Implications: Nurturing IC and in particular HC confirms the importance of fi rm knowledge and employees with right training and other support. Additionally, further clarifi cation regarding SC is required.

Originality: This paper presents the fi rst study of the IC relationship with fi rm performance in Poland as well in the Netherlands. Additionally, the comparison between fi rms of both countries establishes a novelty in IC research.