Chapter 8: Professional Standards Bashier Elhafy October 8, 2019 Chapter 8: Professional Standards, CVA, Fundamentals, Techniques & Theory Comments Off on Chapter 8: Professional Standards 33 Views Study Materials Knowledge TestBonus Questions Loading Viewer... Professional Standards .................................................................................................................... 1 Your name: * Your email address: * Start Quiz <<123456789101112>> 0% Question 1 of 12 1. The Professional Standards are :Rules-based.Applicable to economic damages reports.Not applicable to valuations performed for transactions (M&A engagements).Principles-based. Loading... Question 1 of 12Question 2 of 12 2. What are the types of Valuation Services recognized by the Professional Standards?The Professional Standards recognize two types of services, Conclusion of Value and Calculated Value.The Professional Standards recognize two types of services, Valuation Engagements and Calculation EngagementsThe Professional Standards recognize three types of services, Conclusion of Value Services, Opinion of Value Services, and Estimate of Value Services.The Professional Standards recognize two types of services, Conclusion of Value Services and Opinion of Value Services. Loading... Question 2 of 12Question 3 of 12 3. The Reporting Standards would NOT be exempt for a Valuation Engagement for what purpose?Gift taxFamily lawShareholder oppression actionBreach of contract litigation Loading... Question 3 of 12Question 4 of 12 4. According to the Development Standards, a member must identify all of the following except for:Subject to be valuedPurpose and use of the valuationPremise of valueMember’s industry experience Loading... Question 4 of 12Question 5 of 12 5. The Professional Standards are applicable when valuing the following:Real estate.Intangible asset.Business ownership interest.B and C Loading... Question 5 of 12Question 6 of 12 6. Under the Professional Standards, when expressing a Conclusion of Value, the value amount may be communicated :As a range of values.As a single number.Orally.All of the above. Loading... Question 6 of 12Question 7 of 12 7. A report expressing a Conclusion of Value may be presented in a:Summary ReportDetailed ReportRestricted ReportLetter ReportA and B Loading... Question 7 of 12Question 8 of 12 8. If I am also a member of ASA must I still also follow the Professional Standards in a Valuation Engagement?No. As a member, you may select which organization’s standards are most appropriate to the valuation you are performing and write your report in the manner prescribed by that organization.No. This would confuse the requestor of the report.Yes. If you are a member of more than one certifying organization with standards, you must adhere to all of them as required by that organization.Yes. When the analyst is expressing a range of values, it is necessary to document the Professional Standards definition of a range of values. Loading... Question 8 of 12Question 9 of 12 9. When performing Other Services as defined by the Professional Standards, all of the Professional Standards shall apply except for:General and Ethical StandardsDevelopment StandardsReporting StandardsA and BNone of the above, all standards applyB and C Loading... Question 9 of 12Question 10 of 12 10. A member shall not express either a Conclusion of Value or a Calculated Value unless the member and the member’s firm state whether or not the member or the member’s firm has a financial interest in the subject of the engagement.TrueFalse Loading... Question 10 of 12Question 11 of 12 11. A member may perform a Valuation Engagement for a contingent fee when expressing a Conclusion of Value.TrueFalse Loading... Question 11 of 12Question 12 of 12 12. The primary difference between a Valuation Engagement and a Calculation Engagement is that:A Calculation Engagement is a shorter form of a Valuation Engagement.A Calculation Engagement can result in a range of values whereas a Valuation Engagement can only result in a single value.The results of a Valuation Engagement can only be presented in a Detailed Report while the results of a Calculation Engagement can only be presented in a Summary Report.A Valuation Engagement requires that a member applies valuation approaches and methods deemed in their professional judgment to be appropriate, whereas a Calculation Engagement occurs when the client and member agree to specific valuation approaches, methods, and the extent of selected procedures. Loading... Question 12 of 12 Loading... Loading Viewer... Share tweet
