Rise of Sustainable Corporate Governance in Emerging Economies: Perspective of Government Auditor Capacity and Legislation

As part of the environmental, social, and governance (ESG) ecosystem, this paper evaluates fundamental success factors that influence external auditors and relevant stakeholders to be proactive and efficacious in sustaining corporate governance practices in emerging economies. The study presents a preliminary and conceptual policy framework aimed at enhancing sustainable corporate governance, to ensure effective auditing in the public sector, by applying an extensive approach based on agency and corporate risk management theories. Applying an online qualitative technique, exploratory focus groups were held in three countries. The participants were selected by their respective Supreme Audit Institutions, based on their experience and proficiency in public sector auditing. Among the fundamental success factors identified were capacity building for auditors. Validation interviews were conducted to confirm the conceptual government auditor capacity policy framework that is presented. Executive governments, legislatures, and legislative oversight bodies can benefit greatly from the empirical segment of this study to enhance sustainable corporate governance in emerging economies and obtain greater contributions from government auditors.