Working in audits, I find that the GASB and FASB standards for nonprofit
and governmental audits are much the same as the valuation standards. I
think there are a few that are very important.
Professional competence is being sure that you can complete the job you are
required to do. Anyone who hires a professional for a service wants to make
sure they are hiring a person who can do the job they need properly. Hiring a
contractor to build a house is the same as hiring an auditor or a valuation
consultant, you want to make sure that they can perform the necessary tasks
to complete the job the best that it can be done.
Another standard that is similar in valuation and audits is being independent
of the valuation or audit. When writing a report for value, the person
performing the service should not have any vested interest in the business.
Much the same with an audit, if the person writing the report is involved with
the business, they may feel pressure to skew the data one way or another for
their own good.
Establishing understanding with the client is also important so all involved
know the scope of the project and the expectations that are to be reached. The
use of an engagement letter is a good practice to list the services that will be
performed and then add items as necessary for each project and have both
parties sign and agree on all items.
Reference:
AICPA (2007).Statement on standards for valuation services. Retrieved
fromhttps://www.aicpa.org/resources/download/statement-on-standards-for-
valuation-services-vs-section-100
