Back in May, BVWire reported that an exposure draft was in the works concerning global quality control standards for valuations. The exposure draft has now been issued, and it’s the first project in a new collaboration between the International Association of Consultants, Valuators and Analysts (IACVA) and the World Association of Valuation Organizations (WAVO).
Comments wanted: At IACVA’s International Valuation Forum in Atlanta earlier this year, Bill Hanlin (Hanlin Moss Yi, PS), IACVA president, announced that Business Valuation Resources would help disseminate the exposure draft, Proposed Quality Control for Valuation and Appraisal Practice. It is now available on BVR’s Global Business Valuation Resource Centre under the “Articles” tab. IACVA and WAVO offer these standards for voluntary adoption, and they welcome all comments and suggestions for improvement to the proposed standards. Comments are due by October 31, and you can email them to: email@example.com (to the attention of Jenny Wang).
The proposed standards put forth a peer review process similar to what’s used in the accounting profession and which can also serve to head off government regulation in this area. “The Quality Control standards are the first step in having firms adopt a system of quality controls to ensure that all of the firm’s practitioners adhere to the same requirements for documenting each engagement,” say IACVA and WAVO in a joint statement.