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

A Calculation Engagement applies only agreed-upon procedures to reach a 'calculated value,' not a comprehensive conclusion of value.

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

NACVA standards prohibit accepting engagements where a predetermined value impairs the member's objectivity and independence.

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

A Calculation Engagement is reported via a Calculation Report, which carries limited disclosure requirements.

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

NACVA Professional Standards include a records retention requirement so documentation supports the analyst's conclusions.

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

Contingent fees based on the valuation outcome are prohibited as they impair objectivity.

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