6.10: The business valuator as a professional – relevance of membership of the CICBV
To fully appreciate a business valuator’s report, users of such reports need to understand the background of the preparer of the report. There is no legislation that provides exclusivity for members of the Canadian Institute of Chartered Business Valuators in valuation matters. However, by being members of the CICBV, Chartered Business Valuators demonstrate a level of specialization, agree to a code of ethics, and undertake to follow practice standards that should give a user comfort in their professionalism.
The main issues that support the professionalism of a CBV involve the CICBV, the CBV, and engagement administration.
- Recognized expertise: The CBV designation provides support for a valuator’s expertise.
- Code of Ethics: The highest standards of professionalism ensure quality of valuation services.
- Practice Standards: Standards of care to ensure completeness in the various types of reports.
- Practice Inspections: Work prepared for clients’ use by a CBV may be randomly selected for inspection in terms of the program.
- Credibility: Based on valuator’s qualifications, experience, and independence, as well as report preparation decisions.
- Independence: Understanding whether CBVs are acting independently or for another party can affect uses of the report.
- Objectivity: An unbiased judgement for each engagement.
- Relationship with other professionals: clients should consider all the other professionals who may play a role in whatever process the valuation service is required for.
- Engagement letters: Written confirmation that the CBV understands the issues to be addressed in the report and the type of report to be prepared.