CVA CVA Field Inspection & Site Verification 2 — Questions and Answers
Question 1: In CVA site verification, what does a 'business continuity check' involve?
- Confirming an entity is actively operating as represented, with observable evidence of ongoing activity (Correct answer)
- Reviewing the entity's five-year financial forecast
- Testing the entity's disaster recovery plan
- Interviewing all employees about their job satisfaction
Correct answer: Confirming an entity is actively operating as represented, with observable evidence of ongoing activity
A business continuity check confirms that a business is genuinely operating as claimed by observing physical evidence of active operations.
Question 2: Which type of field inspection is MOST appropriate when documentary evidence is internally consistent but unverifiable through databases?
- Unannounced inspection to observe natural operational conditions (Correct answer)
- Scheduled courtesy inspection with advance notice
- Telephone verification in lieu of physical visit
- Desk review with no field component
Correct answer: Unannounced inspection to observe natural operational conditions
When documents appear consistent but cannot be independently verified electronically, an unannounced inspection captures genuine operational conditions.
Question 3: During a field inspection, a CVA agent should avoid which of the following?
- Accepting gifts, meals, or hospitality from the claimant being inspected (Correct answer)
- Taking photographs of the exterior of the premises
- Recording the date and time of arrival
- Noting the names of staff encountered
Correct answer: Accepting gifts, meals, or hospitality from the claimant being inspected
Accepting any gift or hospitality from an inspected party compromises the agent's objectivity and violates CVA ethical standards.
Question 4: A field inspection reveals a business address is actually a virtual office with no physical staff. How should this be classified?
- Material discrepancy requiring documentation and escalation (Correct answer)
- Minor administrative inconsistency
- Acceptable if the claimant explains it verbally
- Standard practice not requiring notation
Correct answer: Material discrepancy requiring documentation and escalation
A virtual office with no physical presence when a staffed location was represented is a material discrepancy that must be documented and escalated.
Question 5: What is 'chain of custody' as it applies to evidence gathered during CVA field inspections?
- The documented record of who collected, handled, and stored evidence from collection to final use (Correct answer)
- The sequence of approvals required before an inspection can begin
- The hierarchy of supervisors responsible for reviewing field reports
- The list of documents a claimant must provide during a visit
Correct answer: The documented record of who collected, handled, and stored evidence from collection to final use
Chain of custody documents every person who handled evidence from collection through final use, ensuring its integrity is defensible.
Question 6: Which observation during a field inspection would MOST strongly indicate an active, legitimate operation?
- Employees present performing their stated duties with verifiable payroll records on-site (Correct answer)
- A well-designed website accessible via mobile phone
- Printed business cards provided by the claimant
- A lease agreement for the premises dated within the past year
Correct answer: Employees present performing their stated duties with verifiable payroll records on-site
Employees actively performing stated duties combined with verifiable payroll records provide strong, corroborated evidence of legitimate operations.
CVA CVA Field Inspection & Site Verification 2
In CVA site verification, what does a 'business continuity check' involve?