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Exploring audit committee practices: oversight of financial reporting and external auditors in Poland

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  • Dorota Dobija

Abstract

This paper investigates audit committee (AC) practices in relation to the oversight of financial reporting and external auditors. We conducted semi-structured interviews of Polish public interest entities to explore AC processes in a different environment from the widely researched Anglo-American model of corporate governance. The results of the study highlight the complexity and contradictory nature of solving governance issues in an environment characterized by a high concentration of ownership. Monitoring is stronger for companies whose dominant shareholder is a foreign investor. Local firms are generally slower to embrace an AC as an effective tool of oversight for financial reporting and external auditors. In general, the processes utilized by ACs are similar to those reported in the literature. The collected evidence does not provide support for a single dominant theory that explains the actual practices of ACs. In fact, multivocality proves to be a more useful approach for explaining various aspects of AC practices. Copyright The Author(s) 2015

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  • Dorota Dobija, 2015. "Exploring audit committee practices: oversight of financial reporting and external auditors in Poland," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 113-143, February.
    • Handle: RePEc:kap:jmgtgv:v:19:y:2015:i:1:p:113-143
    DOI: 10.1007/s10997-013-9281-6
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    Cited by:

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    4. Nurfarahin M. Haridan & Ahmad F. S. Hassan & Yusuf Karbhari, 2018. "Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 1015-1043, December.
    5. Paul Olojede & Olayinka Erin, 2021. "Corporate governance mechanisms and creative accounting practices: the role of accounting regulation," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(3), pages 207-222, September.
    6. Tatjana Horvat & Darko Cander, 2019. "The Influence of Audit and Hospital Council on Financial Statements’ Results in Slovenian Hospitals," Management, University of Primorska, Faculty of Management Koper, vol. 14(2), pages 137-149.
    7. Francesca Gennari, 2019. "How to Lead the Board of Directors to a Sustainable Development of Business with the CSR Committees," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    8. Dorota Dobija & Claudia Arena & Łukasz Kozłowski & Joanna Krasodomska & Justyna Godawska, 2023. "Towards sustainable development: The role of directors' international orientation and their diversity for non‐financial disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 66-90, January.
    9. Dobija Dorota, 2019. "Institutionalizing Corporate Governance Reforms in Poland: External Auditors’ Perspective," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(3), pages 28-54, September.
    10. Habiba Al-Shaer & Muhammad Farhan Malik & Mahbub Zaman, 2022. "What do audit committees do? Transparency and impression management," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1443-1468, December.
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