Institutional pressures and strategic response to auditing implementation of sustainable development goals: the role of public sector auditors

Abstract

PurposeThis paper aims to explore the role of public sectors auditors in strategically responding to institutional pressures to conduct a performance audit of Sustainable Development Goals (SDGs) implementation in Ghana.Design/methodology/approachTo gather in-depth and rich empirical data, semi-structured interviews were conducted with 12 senior and middle management auditors of Ghana's Supreme Audit Institution (SAI).FindingsThe findings indicate that the International Organisation of Supreme Audit Institutions, the government, auditees, political executives and the Audit Service Board all exert institutional pressure on Ghana's audit of SDG implementation. In response to these pressures, the SAI deploys acquiescence, compromise and manipulation strategies that result in the coupling, and in some cases, the loose coupling of SDG audit practices.Research limitations/implicationsObservation method of data collection would have given the researchers first-hand knowledge of the role of auditors, the institutional pressures to SDG audit and the strategic response to the institutional pressures. The authors were unable to accompany the public sector auditors to their field audits. This would have aided in obtaining more detailed empirical data.Practical implicationsThe findings suggest that external and internal factors affect public sector audit of SDG implementation. Because the SAI of Ghana is dependent on the central government for budgetary allocation and auditees for miscellaneous logistics, it is under coercive pressure to meet rent seeking demands of political executives. As a result, SAIs in emerging economies must revisit the other side of accountability by reinforcing a constructive dialogue with those held accountable, particularly politicians and auditees.Originality/valueThis study's contribution is the exploration and application of institutional theory and Oliver (1991) model for responding to institutional pressures to a novel research area, namely, SDG implementation audit by public sector auditors in an emerging economy.

Institutional pressures and accountability processes in pursuit of sustainable development goals: Insights from Ghanaian indigenous oil companies

“…The research findings presented in the following section were then organised using the emergent themes. It is worth noting that the answers to the research questions and the earlier accounting literature examined in this study informed the emerging themes (Tetteh et al, 2023). Finally, follow-up interviews were conducted to get to the bottom of any unanswered doubts (Walsham, 2006).…”

“…For instance, existing academic and policy researches have focused on the role of global and national governance in attaining the SDGs (McKeon, 2017), with contributions on national projects (see Abhayawansa et al, 2021; Michel, 2016; Tetteh et al, 2023). Some studies have also identified how government accountability systems are crucial to the national implementation of the SDGs (Abhayawansa et al, 2021; Lauwo et al, 2022; Michel, 2016).…”

“…This study was conducted in Ghana because, since 2016, all of the country's presidents have served as co‐chairs of SDG Advocates as a result of institutional and regulatory reforms they implemented (Acheampong et al, 2019; Tetteh et al, 2023). In addition, Ghana performed best among 34 African countries in reaching SDGs according to a poll (Coulibaly et al, 2018).…”

Measuring museum sustainability within the framework of institutional theory: A dictionary‐based content analysis of French and British National Museums' annual reports

“…Indeed, the scientific literature has recently provided an up-to-date perspective on institutional theory and sustainability practices, however with the focus mainly on the for-profit sector. Tetteh et al (2023aTetteh et al ( , 2023b explored the relationship between institutional pressures, accountability practices, and the pursuit of SDGs in Ghana. With a similar approach, Naveed et al (2023) applied the institutional lens to social and environmental sustainability, focusing on gender diversity and corporate green innovation.…”

The Effect of Audit Findings, Follow-Up Audit Recommendations, And BPK Opinions from The Previous Year on The Determination of Opinions in Local Government Financial Statements

“…It is necessary to convey accountability from the agent to the owner / principle in the form of financial statements (Hay & Cordery, 2018). To provide confidence for stakeholders and agents to gain legitimacy for the tasks that have been carried out (Tetteh et al, 2023), auditors are needed to conduct audits of financial statement accountability (Abdullah et al, 2022;Sylvia et al, 2018). In developing countries, the demand for government performance audits is relatively significant (Fan, 2012;Pratiwi et al, 2022).…”