Module 2 - Professional Practice Matters

Question 1

Code of Ethics Principles

Answer 1

a. Maintenance of reputation, integrity, and ability to serve the public interest
b. Personal/professional conduct that may affect the Member’s/CBV Institute’s reputation
c. Performance of professional services
d. Independence and objectivity
e. Confidentiality of client information
Dealings with other Members

Question 2

CBV Institute Practice Standards

Answer 2

x10: Reporting standards
x20: Scope of work standards
x30: File documentation standards

Question 3

Purpose of an Engagement Letter

Answer 3

An engagement letter forms the contract pursuant to which the valuation work will be performed. It may include various restrictions and disclaimers, and its purpose is to safeguard both the valuator and the client.

Question 4

Purpose of a Management Representation Letter

Answer 4

A management representation letter helps to protect a valuator against inaccurate conclusions stemming from relying on untruthful representations made by management.