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3 Pitfalls Valuation Professionals Should Avoid Logo aicpa

  Mark O. Smith, JD, CPA |   Free |   AICPA |   28 Feb 2017 |   AICPA Insights

Valuation professionals who avoid certain deficiencies will produce more supportable, consistent and well-documented valuations. As a result, clients and auditors will have a clear understanding of how the valuations were determined, thus increasing overall trust in the valuation professional. This blog post discusses three common deficiencies that should be avoided.

Topics covered:
  • Management accounting: Technical: Corporate finance & treasury management: Business valuation, Intermediate
  • Fair value measurement: Technical: Business & intangible assets, Intermediate
  • Forensic & valuation services: Technical: Valuation analysis, Intermediate
  • Forensic & valuation services: Technical: Fair value, Intermediate

4 Comments/Reflections

Willias Zihove

Willias Zihove Dec 2021

Having had to review a valuation report for the company's IP, this article provided a good perspective on what to look out for in a valuation report.
Nicholas Potter

Nicholas Potter Sep 2018

I was interested to read this article.  I understand that the quality of any valuation will be driven by the quality of the business information feeding into the valuation model.  Fully understanding any business asset will be onerous to the Valuer who may need to spend more time than imagined getting to understand the business.
Nicholas Potter

Nicholas Potter Aug 2018

I was expecting to read a more in-depth article.PFI (Prospective Financial Information) provided to the Valuer should always be subject to an appropriate level of professional scepticism, enhanced by the Valuers own investigations. Trust but verify?
Tendai Nyakurimwa

Tendai Nyakurimwa Feb 2018

This article is helpful in helping professionals who deal with valuations. The three pitfalls mentioned here are very valid and one should be very careful.
Oftne times incomplete information is the problem. I hope to engage my colleagues and workmates about this subject.
If required to do valuation in future, I will definately take this article into consideration