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

Purpose: This 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/approach: To 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). Findings: The 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/implications: Observation 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 implications: The 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/value: This 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.