The Practice Inspection Program reflects the commitment of CBV Institute to deliver professional excellence in the highly specialized field of business valuation. It upholds the standard of professional practice expected of all CBVs and Students, maintaining public trust in the CBV profession.

Compliance with the Practice Inspection Program is mandatory. CBVs and Students who sign or otherwise take responsibility for a work product should advise clients at the start of an engagement that their work may be subject to selection for practice inspection. Institute Inspectors will have access to work products and supporting files.

The Practice Inspection Program was initiated in 2016 and work products were first subject to inspection as of January 1, 2018. The Institute began conducting practice inspections in 2019.

The Practice Inspection Program is in line with inspection programs of other professions, and serves to:

  • Enhance the confidence that the public and regulatory or other bodies have in the CBV profession; and
  • Assist in maintaining or improving the quality of services provided.

Mandatory Practice Inspection Policy

Details of the Practice Inspection Program are set out in the Mandatory Practice Inspection Policy

Practice Inspection Declaration

CBVs are required to submit an annual Practice Inspection Declaration whether or not they issued work products for the prior period which may qualify for practice inspection. The submission deadline for this declaration is March 1st each year.

Practice Inspection Checklists

The Practice Inspection Program covers inspection of completed work, including final reports and engagement-related working files, to determine whether:

  • Applicable CBV Institute Practice Standards have been complied with
  •  CBV Institute’s Code of Ethics has been followed
  • Technical aspects of analysis in support of a conclusion are consistent with
    • The nature of the engagement
    • The expected practice of a competent practitioner
Checklists used in the inspection process are available for review. (Log in to access)
  • Practice Inspection Checklist – 100 Series Practice Standards
  • Practice Inspection Checklist – Appendix A to Practice Standard 110
  • Practice Inspection Checklist – Appendix B to Practice Standard 110
  • Practice Inspection Checklists – 200 Series Practice Standards
  • Practice Inspection Checklist – 300 Series Practice Standards
  • Practice Inspection Checklist – 400 Series Practice Standards
  • Practice Inspection Checklist – Appendix A to Practice Standard 410
  • Practice Inspection Checklist – 500 Series Practice Standards
  • Practice Inspection Checklist – 600 Series Practice Standards

The Internal Compliance Review Checklist is available for CBVs and Students whose firms use an internal quality control process to self-assess compliance with professional standards. A functioning internal quality control process may reduce the extent of work products inspected by the Institute.

Summary Report – 2019

We are pleased to share this first report with CBVs and Registered Students containing the summary of findings of the first year of practice inspections for CBV Institute, which covered the period January 1, 2018 to December 31, 2018.

(Log in to access)

Other Resources

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Sample Engagement Letter language

All Members and Registered Students who sign or otherwise take responsibility for a work product must advise their clients in advance and in writing that Work Product may be subject to selection as part of a Practice Inspection. Practitioners should obtain express client consent to disclose Work Product to the Institute in order to comply with professional obligations. This should be done at the engagement acceptance stage. Sample engagement letter language has been provided below.

Practice Inspection Program – Free Archived Webinar

Frequently Asked Questions

For enquiries on the Practice Inspection Program, please contact:

Catalina Miranda, CPA, CA, CBV
Director, Professional Practice
416-613-0300
catalina.miranda@cbvinstitute.com


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