Work

The Joint Effects of Valuation Focus and Employer Type on Valuation Specialists’ Perceptions of Organizational-Professional Conflict

Year: 2025

Type: article

Abstract: SUMMARY Valuation specialists play a crucial role in preparing and auditing fair value measurements (FVMs) but often face conflicts between professional and organizational demands. We surveyed 222 experienced specialists to understand how their primary valuation focus (financial versus nonfinancial instruments) and employer type (professional services firms (PSFs) versus non-PSFs) impact perceived organizational-professional conflict (OPC). Results suggest that financial instrument specialists employed by non-PSFs report higher OPC levels, lower job satisfaction, and increased turnover intentions. However, prior experience in similar organizations appears to mitigate perceived OPC. Further, PSF specialists report higher OPC when they evaluate more FVMs for auditors than they prepare for management. These findings underscore the need for organizations to address role-specific conflicts to improve the retention of specialists in a severely constrained market for their expertise. Results also have implications for the reliability of FVMs in practice. Data Availability: Data are not publicly available, contact the authors. JEL Classifications: M42; M51; M53.

Source: Auditing A Journal of Practice & Theory

DOI: 10.2308/ajpt-2020-131

Authors: Dereck Barr-Pulliam, Stephani Mason, Kerri Ann Sanderson

Institutions: University of Louisville, DePaul University, Bentley University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

Funders: University of Wisconsin-Madison, DePaul University