Certified Valuation Analyst CVA Professional Standards and Ethics 2

Question 1

Under NACVA Professional Standards, what is the primary purpose of a 'Calculation Engagement' as distinct from a 'Valuation Engagement'?

Accepted Answer

To apply only the procedures agreed upon with the client and arrive at a calculated value

Answer

To produce a conclusion of value supported by all applicable approaches

Answer

To provide tax-only opinions for the IRS

Answer

To perform a full forensic audit of the entity

Question 2

A CVA discovers that a client wants the analyst to predetermine a value to support a litigation position. What does the NACVA ethics code require?

Accepted Answer

Decline to accept any predetermined or contingent outcome that impairs objectivity

Answer

Accept the engagement if the fee is sufficient

Answer

Proceed but disclose the bias in a footnote

Answer

Refer the client to a non-credentialed appraiser

Question 3

Which document type under NACVA standards summarizes results with limited disclosure and is appropriate for a Calculation Engagement?

Accepted Answer

Calculation Report

Answer

Detailed Report

Answer

Summary Report

Answer

Comprehensive Conclusion Report

Question 4

What standard requires a CVA to retain engagement documentation for a minimum period to support the conclusions reached?

Accepted Answer

The records retention provision of the Professional Standards

Answer

The Sarbanes-Oxley audit rule

Answer

The GAAP disclosure standard

Answer

The IRS Circular 230 only

Question 5

A CVA is offered a contingent fee tied to the size of the valuation conclusion in a divorce matter. This is:

Accepted Answer

Prohibited because it impairs independence and objectivity

Answer

Permitted if disclosed to the court

Answer

Permitted in family law only

Answer

Required by NACVA for litigation work

Question 6

Under NACVA standards, what must an analyst do before relying on a specialist's report (e.g., a real estate appraiser)?

Accepted Answer

Assess the specialist's qualifications and the reasonableness of their work

Answer

Automatically accept it without review

Answer

Re-perform the entire specialist analysis

Answer

Ignore it to preserve independence

Question 7

What is the appropriate course of action when a CVA lacks the competence to complete a specialized portion of an engagement?

Accepted Answer

Obtain the needed competence, associate with a qualified person, or decline the work

Answer

Complete it anyway and disclaim liability

Answer

Outsource it secretly without disclosure

Answer

Reduce the scope without telling the client