b b b b b Three of the major elements required in the statement on standards for valuation services
(SSVS) are professional competence, objectivity and conflict of interest, and establishing an
understanding with the client.
Professional Competence: Professional competence means that the CPA can handle their duties
and are subject matter experts. Performing a “valuation engagement with professional
competence involves special knowledge and skill” (AICPA.org, 2015).
Objectivity and Conflict of Interest: Objectivity means to be free from conflicts of interest, not
interested, and honest. If there is a conflict of interest, the analyst needs to disclose and obtain
consent to move forward (AICPA.org, 2015).
Establishing an Understanding with the Client: From the start of a valuation, the analyst should
establish an understanding with their client. This should be in a written format, but if not an oral
understanding is fine as long as the analyst documents the understanding. As the valuation goes
on, the understanding can be modified depending on what they come across (AICPA.org, 2015).
SSVS is similar to other standards as they set guidelines to ensure consistent, honesty, and
accounting practices are being followed properly.
References
Statement on standards for valuation services (VS Section 100). AICPA. (2015). Retrieved
June 27, 2022, from https://www.aicpa.org/resources/download/statement-on-
standards-for-valuation-services-vs-section-100
