CPA/ABV Credential Frequently Asked Questions (FAQs) 


    Eligibility
    • Do I have to be a member of the AICPA to apply for the credential?
    • Do I need an active CPA license to practice public accounting to become a CPA/ABV?
    • Do I need to be an FVS Section member in order to apply to become a CPA/ABV credential holder?
    • If I don’t meet the requirements to become a CPA/ABV credential holder, is there another way to get information about business valuation?
    • What is the initial pricing for the CPA/ABV credential?

    Valuation Experience
    • What are some examples of qualifying experience?
    • Does the analysis and work product of the candidate need to be reviewed by a CPA or CPA/ABV (or equivalent credential holder) in order to qualify to fulfill the experience requirement?

    ABV Exam
    • Can I take the ABV Exam before I complete the education and experience requirements for the CPA/ABV credential?
    • After I complete the ABV Exam, how long do I have to apply for the credential?
    • What is the cost of the ABV Exam?
    • What is the duration of the ABV Exam?
    • Will formulas be provided during the exam?
    • Will calculators be admitted into the examination room?
    • Do I still receive any credit for having another business valuation credential?
    • How do I register and when will I be able to take the exam?
    • Where are the test centers located for the ABV Exam?
    • Do exam results include numerical scores or just pass/fail results?
    • How long is the grading process and when do exam candidates find out if they passed or failed?
    • What materials are recommended by the AICPA to study for the ABV Exam?
    • If a candidate only took the ABV Exam Review Course, how prepared would the candidate be to take the exam?
    • What is covered in the live ABV Exam Review Course? Do candidates complete practice tests/questions?
    • What is covered in the self-study ABV Exam Review Course? Do candidates complete practice tests/questions?

    General
    • If I am a CPA/ABV, do I automatically become a member of the Forensic & Valuation Services Section?
    • I have applied for the CPA/ABV credential. What happens next?
    • Does the AICPA audit CPA/ABV applications?
    • How does the CPA/ABV credential differ from other business valuation credentials?

    Recertification
    • What is required to maintain the CPA/ABV credential?
    • What is the annual renewal price for the CPA/ABV credential?
    • What if my job changes or other professional or personal circumstances preclude me from meeting the recertification requirements in a timely manner?
    • Under what conditions may a CPA/ABV credential holder request Inactive Status?
    • What is the effect of being on Inactive Status?
    • How do you restore Active Status after being on Inactive Status?
    • How do you determine if continuing professional education (CPE) is related?
    • When does the initial three-year period for recertification begin?

    Use of the CPA/ABV Credential
    • What is the correct use of the CPA/ABV credential?
    • May I use the credential ABV by itself behind my name?
    • Can a firm include the credential "Accredited in Business Valuation" or "CPA/ABV" on its letterhead and in marketing materials?
    • If I am no longer a member of the AICPA, can I still use the CPA/ABV credential?

     

    Eligibility

    Do I have to be a member of the AICPA to apply for the credential?

    Yes. Only members in good standing with the AICPA can use the CPA/ABV credential. The CPA/ABV credential is granted exclusively by the AICPA.

    Do I need an active CPA license to practice public accounting to become a CPA/ABV?

    No. You must hold a valid and unrevoked CPA certificate issued by a legally constituted state authority and meet other prescribed requirements. You do not need to have an active CPA license.

    Do I need to be an FVS Section member in order to apply to become a CPA/ABV credential holder?

    No. You need to be an AICPA member in good standing and meet the valid and unrevoked CPA certificate requirement. CPA/ABV credential holders receive complimentary FVS Section membership.

    If I don’t meet the requirements to become a CPA/ABV credential holder, is there another way to get information about business valuation?

    Yes. You may join the FVS Section – the only requirement is AICPA membership in good standing.

    What is the initial pricing for the CPA/ABV credential?

    The standard initial pricing for the CPA/ABV credential is $360 unless you qualify for one of the exceptions listed below:

    • If the job code in your AICPA profile is “Government”, then the initial price is $260.
    • If you hold the CPA/CFF credential, then the initial price is $150.
    • If you hold another AICPA credential, then the initial price is $260 (unless category #4 below applies with a lower price)
    • If you are a member of the FVS Section, then you will receive a credit for a pro rata portion of your remaining annual FVS membership fee. (The actual cost will be somewhere between the $360 standard price and $160 depending on the number of months remaining in your annual FVS membership period)

    Valuation Experience

    What are some examples of qualifying experience?

    As long as valuation services performed by the analyst meet the definition of valuation services described under the Business Experience Requirement section of the ABV Application Kit, the following examples qualify to fulfill the experience requirement:
    • Experience performing valuation services as an employee of a financial services firm that is not an accounting firm (i.e., a consulting firm, litigation support firm, private equity firm, investment bank, etc.)
    • Experience reviewing valuations as an auditor in a CPA firm
    • Experience performing valuation services as an employee of a reporting entity for the purpose of fair value accounting measurement and disclosure
    • Experience performing valuation services for the purpose of litigation and arbitration (including bankruptcy, commercial litigation, marital dissolution, etc.)
    • Experience performing valuation services as an employee of a private company for the purpose of management planning (including acquisitions, divestitures, investment decisions, investment performance evaluation, etc.)

    Does the analysis and work product of the candidate need to be reviewed by a CPA or CPA/ABV (or equivalent credential holder) in order to qualify to fulfill the experience requirement?

    The work product of a sole practitioner, partner, or someone else in a role that does not require the review of a direct supervisor does not need to be reviewed by another qualified CPA/ABV. The candidate would qualify as long as he/she has successfully completed the required level of experience stated in the Business Experience Requirement section of the ABV Application Kit. However, the candidate should be aware that applications are selectively audited to ensure compliance with the CPA/ABV credential requirements.

    ABV Exam

    Can I take the ABV Exam before I complete the education and experience requirements for the CPA/ABV credential?

    Yes. There is no time limit in terms of when you successfully complete the exam and when you apply for the CPA/ABV credential. However, when you do apply, only CPA/ABV-related education and experience in the last 5 years can be used to meet the education and experience requirements for the CPA/ABV credential.

    After I complete the ABV Exam, how long do I have to apply for the credential?

    You can apply for the credential any time after completing the ABV Exam. We would encourage you to apply as soon as you qualify.

    What is the cost of the ABV Exam?

    The ABV Exam fee for new registrants is as follows: $300 for FVS Section members, $400 for AICPA members and $500 for non-AICPA members. “Early bird” registration discounts are available. Should you be required to retake the exam, a $100 fee will be assessed for the second registration process.

    What is the duration of the ABV Exam?

    The ABV Exam is a computer-based examination that lasts a total of 6 hours and 45 minutes in length, including a 45-minute break. Please note that there is not a particular point in the exam where this break is required but candidates are allowed to take up to 45 minutes for a break at one point or during multiple points of the exam. The ABV Exam contains two areas of questioning: discrete multiple-choice questions and case studies with accompanying multiple-choice questions. There are a total of 180 questions, 155 of which are discrete multiple choice and 25 of which are case study related multiple choice questions.

    Will formulas be provided during the exam?

    During the examination, candidates will be able to access the International Glossary of Business Valuation Terms as well as Formulas & Variable Definitions via computer. These items are included as displays that can be accessed in the same manner as the information provided for the case studies.

    Will calculators be admitted into the examination room?

    Yes, the following calculators are approved to be admitted into the examination room:
    • Hewlett Packard 12C
    • Hewlett Packard 10B
    • Hewlett Packard 10b II
    • Hewlett Packard 17bII+
    • Texas Instruments TI BAII Plus
    • Texas Instruments TI BAII Plus Professional
    Do I still receive any credit for having another business valuation credential?

    The exam requirement is still waived for anyone who holds the ASA or AM credential awarded by the American Society of Appraisers.

    How do I register and when will I be able to take the exam?

    Registration is available online. Registrants will receive a Notice to Schedule via email. The ABV Exam is administered twice a year during the summer and fall (July and November/December).

    Where are the test centers located for the ABV Exam?

    The ABV Exam is hosted at Kryterion test centers throughout the United States and Canada.

    Do exam results include numerical scores or just pass/fail results?

    Numerical score results are not included in results letters. The ABV Exam is designed to psychometrically assess whether candidates have a sufficient base level comprehension of the ABV Body of Knowledge. Therefore, results are issued as either “Pass” or “Fail” indicating whether the exam taker meets this minimum threshold.

    Failing candidates will receive additional performance indicators which display how well they performed in each of the content areas of the examination in comparison to those that passed the exam. This information is derived by determining the average performance of each passing candidate within the respective section and then performing a comparison of their results to the derived averages. The ‘WEAKER’, ‘COMPARABLE’, and ‘STRONGER’ classifications identify whether performance results were below average, the same as, or above average than the performance results of passing candidates in this area.     

    How long is the grading process and when do exam candidates find out if they passed or failed?

    The ABV Exam grading process begins immediately after the end of each exam window and can take up to two months. Results are distributed by email and US mail upon the conclusion of the grading process.

    What materials are recommended by the AICPA to study for the ABV Exam?

    Our recommendation is that test candidates do not solely rely upon one resource to prepare for the exam and that they utilize the numerous materials prescribed along the ABV Roadmap to become a CPA/ABV credential holder. The following is a list of materials the AICPA recommends exam candidates utilize to fully prepare for the exam. NOTE: The level of preparation may vary by individual based upon the level of education and experience a candidate already has.
    • ABV Assessment Tool – serves as a preliminary means to gauge an individual’s level of familiarity with the BV body of knowledge
    • Business Valuation School – intermediate level education course spanning 5 days targeted toward practitioners interested in creating or growing a business valuation discipline within their firms
    • ABV Examination Review Course – advanced level course available in self or group-study targeting those areas that will be tested in the ABV Exam

    If a candidate only took the ABV Exam Review Course, how prepared would the candidate be to take the exam?

    The AICPA highly recommends that candidates do not rely solely upon the information provided in the ABV Exam Review Course. This review course is meant as a review only and is not a means for candidates to learn the material in the ABV Body of Knowledge. The additional preparation necessary would differ by individual based on prior education and experience.

    What is covered in the live ABV Exam Review Course? Do candidates complete practice tests/questions?

    A full description of the live ABV Exam Review Course can be found on our website. Individuals taking this course will receive a comprehensive overview of business valuation information covering the ABV Exam’s Content Specification Outline (CSO). This course also provides helpful test-taking tips and includes over 350 review questions (including case studies) to assist in your exam preparation.

    What is covered in the self-study ABV Exam Review Course? Do candidates complete practice tests/questions?

    A full description of the self-study ABV Exam Review Course can be found on our website. The self-study edition of the ABV Exam Review Course consists of an in-depth, comprehensive review of the ABV Body of Knowledge, over 200 review questions and a final exam to assist in the candidate’s preparation for the ABV Exam.

    General

    If I am a CPA/ABV, do I automatically become a member of the Forensic & Valuation Services Section?

    Yes. All CPA/ABV credential holders are automatically enrolled as an FVS Section member, receiving all the benefits and information updates that membership includes.

    I have applied for the CPA/ABV credential. What happens next?

    Once documentation and payment have been submitted, the AICPA will review and issue a welcome letter if approved. At this time:
    • Individuals may use the CPA/ABV credential in accordance with the rules of the state in which they practice. Members are not authorized to use the credential until they receive this notice.
    • At the applicant’s request, their state society will be notified so the information can be promoted in state society newsletters.
    • A CPA/ABV certificate will be sent to the successful candidate.
    Note: In some cases, applicants may be required to provide additional information in support of their application.

    Does the AICPA audit CPA/ABV applications?

    Yes. A percentage of approved applications are selected for random audit. Any misrepresentations or incorrect information may result in disciplinary action, including suspension or revocation of CPA/ABV eligibility and/or credential.

    How does the CPA/ABV credential differ from other business valuation credentials?

    The CPA/ABV credential is the only valuation credential that is maintained by the AICPA, the membership organization for CPAs. Individuals holding the CPA certificate are perceived to be highly qualified, ethical, and well-trained professionals within the financial services industry and the overall business community. People who hold both the CPA and the CPA/ABV provide the business and legal community confidence in the services they provide and a perceived advantage over competing valuation credentials.

    Recertification

    What is required to maintain the CPA/ABV credential?

    Credential holders must pay an annual $360 fee and meet CPA/ABV recertification requirements every three years:
    • Maintain AICPA membership in good standing
    • Hold a valid and unrevoked CPA certificate or license issued by a legally constituted state authority
    • Obtain at least 60 hours of valuation-related education over the preceding three years (Note: Authoring or publishing articles is limited to 24 hours. Classes taught or lectures given are limited to 36 hours.)
    • Submit electronic intent to comply with all recertification requirements.

    What is the annual renewal price for the CPA/ABV credential?

    Credential renewal pricing is $360 for the first credential and $260 for each subsequent credential held. There are 2 exceptions:
    • If the job code in your AICPA profile is “Government,” then each credential has a renewal price of $260
    • If you hold both the CPA/ABV and CPA/CFF credentials, then the renewal price for the second one is $150 (instead of the standard $260)
      • Multiple credential examples:
      • If you hold the CPA/ABV and CPA/PFS, then your renewal price is $620 ($360 + $260) for both credentials.
      • If you hold the CPA/ABV and CPA/CFF, then your renewal price is $510 ($360 + $150) for both credentials.
      • If you hold the CPA/ABV, CPA/CFF and CPA/CITP, then your renewal price is $770 ($360 + $150 + $260) for all three credentials.

    What happens if my job changes or other professional or personal circumstances preclude me from meeting the recertification requirements in a timely manner?

    If recertification requirements are not met within the specified time period your CPA/ABV certification will be revoked and all initial requirements, excluding the examination, must again be met to regain the credential. Alternatively, credential holders may request to be placed on inactive status. Such a request must be submitted in writing. All requests will be reviewed by the Accreditations Department on a case by case basis and a final determination made.

    Under what conditions may a CPA/ABV credential holder request Inactive Status?

    Following are examples of the conditions under which inactive status may be granted:

    • The credential holder is not working due to retirement, unemployment or a medical condition;
    • The credential holder is no longer providing business valuation services, but intends to resume practice in the area at a later date; or

    Other circumstances as agreed upon by the Accreditations Department and the individual.

    What is the effect of being on Inactive Status?

    Following are effects of being on Inactive Status: 

    • Inactive CPA/ABV credential holders need not meet the work experience and continuing education requirements during the period in which their credential is inactive. However, they must maintain a valid state CPA license and be an AICPA member in good standing.
    • Inactive CPA/ABV credential holders cannot hold themselves out as a CPA/ABV credential holder and will not be included in any geographic listing of CPA/ABV holders.
    • Inactive CPA/ABV credential holders will not receive the newsletter, FVS Consulting Digest and other special offers accorded those holding the CPA/ABV credential.

    How do you restore Active Status after being on Inactive Status?

    Inactive CPA/ABV credential holders may restore Active Status by completing and returning the ABV Credential Reinstatement Application. Reinstatement applicants must meet the CPA license/certificate requirement and the education requirement to be reinstated. Reinstatement applicants do not need to re-qualify for the examination and experience requirements. In addition, a reinstatement and application fee of $460 must be paid.

    How do you determine if continuing professional education (CPE) is related?

    Related CPE adds to the credential holder's knowledge, understanding and skills to perform valuation engagements. The ABV Credential Committee has provided an outline of suggested CPE topics that are directly related to the conduct of a valuation engagement and are considered to be part of the required body of knowledge for the CPA/ABV credential holder.

    When does the initial three-year period for recertification begin?

    The period begins at the end of the year you attained the CPA/ABV credential (not the date of the exam). For example, if you received the CPA/ABV credential December 12, 2004, you will need to complete the education, experience, and other recertification requirements by December 31, 2007. You will be required to state your re-certification qualifications online upon e-mail request.

    Use of the CPA/ABV Credential

    What is the correct use of the CPA/ABV credential?

    The use of "CPA/ABV" on letterheads, business cards and other marketing materials is governed by the rules of the board of accountancy in the state(s) in which you practice. The AICPA does not currently have a prescribed format for the credential.

    Most state accountancy laws are currently silent on whether CPAs can use the specialty credential. In 1994, the U.S. Supreme Court decided the Ibanez case, which held that states couldn't prohibit a CPA from using a specialty credential, such as the CPA/ABV credential, unless there is factual proof of real or potential harm. If you check with your state board and run into a problem in using the credential, e-mail us at abv@aicpa.org.

    May I use the credential ABV by itself behind my name?

    Under the AICPA's Code of Professional Conduct, utilizing the credential by itself would not cause a member to be in violation of Rule 102—Integrity and Objectivity (misrepresenting facts) or Rule 502—Advertising or Solicitation. Please check with your state board of accountancy as state accountancy rules may impose other restrictions.

    Can a firm include the credential "Accredited in Business Valuation" or "CPA/ABV" on its letterhead and in marketing materials?

    The CPA/ABV is an individual credential and not a firm credential. However, it is permissible under AICPA Ethics Rule 502 for a firm to hold itself out as Accredited in Business Valuation and to use the CPA/ABV credential on its letterhead and in marketing materials only if all partners or shareholders of the firm currently have the CPA/ABV credential. An individual member who holds the credential may use it after his or her name. Please check with your state board of accountancy as state accountancy rules may impose other restrictions.

    If I am no longer a member of the AICPA, can I still use the CPA/ABV credential?

    No. If your AICPA membership is terminated, you will no longer be able to use the CPA/ABV credential and your CPA/ABV certificate must be returned to the AICPA.




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