Abstract: The aim of this study is to analyze the role and
effectiveness of internal mechanism (audit committee) of corporate
governance on credit institutions performance in Croatia. Based on
research objective, sample of 78 credit institutions listed on Zagreb
Stock Exchange, from 2007 to 2012, has been collected and
efficiency index of audit committee (EIAC) has been created. Based
on the sample and created EIAC, conclusions are as follows: audit
committees of credit institutions have medium efficiency, based on
EIAC measurement; there is a significant difference in audit
committee effectiveness, in observed period; there is no positive
relationship between audit committee effectiveness and credit
institution performance; there is a significant difference between
level of audit committee effectiveness and audit firm type. Future
research should contain increased number of elements in EIAC
creation and increased sample, for all obligators who need to
establish audit committee.
Abstract: The aim of this paper is to raise general awareness of transparency importance for audit firms and for audit services’ users. This paper analyzes transparency of audit firms that audited financial statements of listed companies, for year 2011 and 2012. We use this two years because in the meantime Code of Ethics for Professional Accountants has been adopted. This paper investigates whether transparency reports of audit firms are in accordance with the Croatian Audit Act and whether there is a difference on transparency in observed years. For this paper quality index of transparency report and financial indicators of audit firms are used to get conclusion about condition of audit firms transparency reporting. Results of our study indicate that audit firms are not fully transparent, looking for both years. Transparency of audit firms in 2012 has improved significantly, compared with transparency in 2011.