Assignment Part 1:
Question 1: What is the difference between a profession and a professional?
Question 2: What is the difference between a principle and a rule?
Question 3: How does the Statement on Standards for Consulting Services No. 1 define consulting services?
Question 4: Compare the principles, standards, and rules set forth by the AICPA, ACFE, and NACVA, and identify five areas of commonality.
Question 5: What is meant by the adversary-advocacy nature of forensic accounting?
Question 6: What is the purpose of the threats and safeguard approach set forth in the AICPA's Guide for Complying with Rules 102-505?
Question 7: What are the two broad categories of safeguards set forth in the Guide for Complying with Rules 102-505?
Assignment Part 2:
Question 1: Identify three different situations that commonly drive business valuations.
Question 2: What two items are required to calculate the present value of a future benefit stream?
Question 3: In the context of a business valuation engagement, what are the advantages of historical data relative to prospective data?
Question 4: When using the buildup method for determining a required rate of return, what five components are commonly included? Discuss each.
Question 5: How is a discount rate converted into a capitalization rate?
Question 6: What is meant by a standard of value? Describe the four standards of value commonly used in business valuation engagements.
Question 7: Identify and discuss the eight valuation factors set forth in Rev. Rul. 59-60 (Sec. 4).
Question 8: Describe the income approach and compare it to the asset approach.