CVA Professional Standards and Ethics

Question 1

Why is it important for valuation analysts to follow NACVA's Professional Standards?

Accepted Answer

To ensure ethical and professional practice

Answer

To limit financial liability

Answer

To satisfy marketing requirements

Answer

To meet international tax codes

Question 2

Which of the following constitutes a conflict of interest in valuation practice?

Accepted Answer

Having financial interest in the subject company

Answer

Using industry benchmarks

Answer

Following engagement letters

Answer

Providing standardized disclosures

Question 3

What is the role of objectivity in business valuation?

Accepted Answer

To provide an unbiased assessment

Answer

To meet client expectations

Answer

To favor shareholders

Answer

To present marketable valuations

Question 4

What should a valuation analyst do if pressured to alter a report’s conclusion?

Accepted Answer

Follow professional standards and maintain integrity

Answer

Comply if payment is high

Answer

Use generic language to please all parties

Answer

Adjust the conclusion slightly

Question 5

How should a valuation analyst handle confidential client information?

Accepted Answer

Keep all client information confidential

Answer

Discuss with colleagues to compare cases

Answer

Post examples anonymously online

Answer

Share with prospective clients

Question 6

Which ethical principle prohibits overstating a company's value for client gain?

Accepted Answer

Integrity

Answer

Loyalty

Answer

Profitability

Answer

Confidentiality