Certified Valuation Analyst CVA Professional Standards and Ethics 3

Question 1

Which premise of value assumes the business will continue operating into the foreseeable future?

Accepted Answer

Going concern

Answer

The going-concern premise assumes the business continues operating rather than being liquidated.

Question 2

A CVA must disclose in the report any restrictions on the scope of work that affect the conclusion. This requirement promotes:

Accepted Answer

Transparency so users understand limitations on the analysis

Answer

Disclosing scope limitations ensures report users understand how restrictions may affect the conclusion.

Question 3

Under the ethics standards, when may a CVA disclose confidential client information?

Accepted Answer

When legally compelled or with client consent

Answer

Confidential information may only be disclosed with client consent or when legally required (e.g., subpoena).

Question 4

What is the standard of value most commonly used in estate and gift tax valuations?

Accepted Answer

Fair market value

Answer

Fair market value is the IRS standard for estate and gift tax purposes.

Question 5

A CVA serving as an expert witness must maintain which posture even when retained by one party?

Accepted Answer

Objective, independent, and unbiased opinion

Answer

An expert witness must remain objective and unbiased regardless of which party retained them.

Certified Valuation Analyst Practice Test