Assurance of environmental, social and governance disclosures in a developing country: perspectives of regulators and quasi-regulators

The paper explores the assurance of environmental, social, and governance (ESG) disclosures in a developing country. Unlike other papers, this study focuses on regulators and quasi-regulators understanding of ESG assurance, their perception and preferences for assurance providers, and the considerations in choosing an assurance provider. Using a qualitative research design, the Strong Structuration Theory was employed to draw meanings from data gathered through semi-structured interviews. Findings reveal that external factors such as the emerging nature of ESG in Ghana, the working fields of interviewees, the developing nature of the internal audit function, non-Big 4 audit firms, and the accounting profession were crucial in interviewees’ conceptualization of ESG assurance and their preferences for various assurance providers. Also, there is low preference for accountants, internal auditors, and non-Big 4 firms as ESG assurance providers, particularly for environmental and social disclosures. Regulators, however, received a high endorsement. It was evident that expertise and regulatory oversight were the main factors interviewees considered in choosing assurance providers. Accountants, non-Big 4 audit firms, and internal auditors would need to improve stakeholders’ perception of their capacity and independence for ESG assurance. Moreover, considerations such as the value for expertise, independence, and reputation for regulators affect the choice of an ESG assurance provider. The findings have implications (outcomes) for regulators to consider their ESG assurance participation and its consequences.