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FAQs

Do I have to meet the experience requirements before taking the ABV examination?

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

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

Does simply assisting in the preparation of common-sized financial statements, ratio analysis or performing certain analytical review procedures count toward the ten (10) engagement/project experience requirement to be able to sit for the ABV Examination?

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

How will it be determined which exam I sit for?

How much will it cost to apply for the ABV credential?

What is the format of the ABV exam?

What is the MEP System?

Is it necessary to complete the 75 hours of business valuation life long learning credits before taking the ABV Exam?

What happens 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 an ABV credential holder request Inactive Status?

What is the effect of being on Inactive Status?

What is an example of being responsible for a business valuation engagement?

How do experience affidavits that have open issues get resolved?

Assuming that I qualify to take the ABV Examination, does the AICPA offer a review course for ABV candidates?

One of the criteria for maintaining the ABV credential is that each credential holder must complete sixty hours of related CPE during each three-year period subsequent to obtaining the ABV credential. How do you determine if the CPE is related?

What are some of the CPE categories or subjects that the ABV Credential Committee recommends as part of the body of knowledge for the ABV holder?

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

What is the correct use of the ABV credential?

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

Where can I find additional information about the ABV credential and its benefits?

Some frequently asked questions about the ABV accreditation program:

Q Do I have to meet the experience requirements before taking the ABV examination?

A If you do not have six (6) engagements completed, you may still sit for the ABV Exam; however you are required to complete this requirement within 24 months of passing the exam before being awarded the ABV credential. CPAs who hold the Accredited Senior Appraiser credential and who wish to use that credential to fulfill their Examination Requirement are required to submit a completed application documenting all required Business Experience and Life Long Learning at the time they apply for the credential. New entrants and holders of other specified credentials have 24 months after they are notified that they have passed their AICPA ABV Examination (ABV I and ABV, or ABV I) exam to fulfill their Business Experience and Life Long Learning requirements.

Q Do I need an active license to practice public accounting to become an ABV?

A No. You must hold a valid and unrevoked CPA certificate issued by a legally constituted state authority and meet other prescribed requirements.

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

A No. Only AICPA members in good standing with the AICPA can use the ABV credential. If your AICPA membership is terminated, you will no longer be able to use the ABV credential and your ABV certificate must be returned to the AICPA.

Q Does simply assisting in the preparation of common-sized financial statements, ratio analysis or performing certain analytical review procedures count toward the six (6) engagement/project experience requirement to be able to sit for the ABV Examination?

A No. The experience component of the eligibility requirement to receive the ABV credential states that the candidate must provide evidence of six (6) business valuation engagements that demonstrate substantial experience and competence. For purposes of the ABV credential program, the ABV Credential Committee has defined a business valuation engagement or project as involving:

Sufficient research and analysis to arrive at a conclusion or estimate of value, of an entity, instrument or economic benefit, requiring a documented conclusion.

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

A The ABV examination will be administered over a four-week period at domestic test centers in the nationwide Prometric Test Center network. Anyone interested in taking the exam must complete the ABV Credential Application and submit their application fee to the AICPA to become a valid candidate for the exam. All valid candidates for the exam will receive test administration information in the form of a Notice to Schedule letter including an (800) telephone number and a web address to schedule an appointment.

Q How will it be determined which exam I sit for?

A You will need to complete the ABV Credential Application in order for AICPA staff to grant approval for you to sit for the appropriate exam. All members will be asked to provide proof of passing any exams other than the ABV Examination in order to be considered exempt from either the entire exam or from Part I of the exam. The following list should help you determine which exam will be the one that you will most likely be asked to complete:

1. Exempt from the ABV Exam - Individuals holding ASA credential

2. Requires Part I (4 hour - ABVI) ABV Exam - Individuals holding CVA, CBA or CFA credential

3. Requires Parts I & II (8 hour) ABV Exam - Individuals holding no other BV credential

Q How much will it cost to apply for the ABV credential?

A The ABV application fee is currently $550.

Q What is the format of the ABV exam?

A The exam will be administered in two sections, Part I (ABVI) and Part II (ABV). Both parts are administered as four hour exams that consist of both multiple choice questions and problem solving case studies, and will provide coverage of the entire BV body of knowledge as outlined in the ABV Content Specification Outline (CSO).

Q What is the MEP System?

A The Multiple Entry Point (MEP) System is comprised of a portfolio of business experience, life long learning and examination based on a point system of 100 points. For ABV the point system includes:

• 25 points - Business Experience (10 engagements/projects)

• 25 points - Life Long Learning (75 hours of CPE)

• 50 points - Examination

Q Is it necessary to complete the 75 hours of business valuation life long learning credits before taking the ABV Exam?

A No. You may still sit for the ABV Exam, however you will need to satisfactorily complete the 75 hours and provide sufficient documentation within 24 months of taking the exam before you receive the ABV credential. Please note that those claiming an ASA credential to fulfill their examination requirement must complete their 75 hours of Life Long Learning credit before completing their initial application for the credential.

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

A If recertification requirements are not met within the specified time period your ABV certification ceases 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.

Q Under what conditions may an ABV credential holder request Inactive Status?

A 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.

Q What is the effect of being on Inactive Status?

A Recertification Requirements. Inactive 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.

Use of the ABV credential. Inactive ABV credential holders cannot hold themselves out as an ABV credential holder and will not be included in any geographic listing of CPA/ABV holders.

ABV benefits. Inactive ABV credential holders will not receive the newsletter, CPA Expert and other special offers accorded those holding the ABV credential.

Q What is an example of being responsible for a business valuation engagement?

A Individual A inputs raw data into a spreadsheet program. Individual B analyzes that data and arrives at a conclusion of value. Individual C reviews the data that A and B worked on and signs off on the project. In this example, both B and C meet the criteria of being responsible for the engagement, A does not.

Q How do experience affidavits that have open issues get resolved?

A If a rejection is contemplated by the Accreditation staff, the application is then passed to the ABV Credential Committee for review and deliberation.

Q Assuming that I qualify to take the ABV Examination, does the AICPA offer a review course for ABV candidates?

A Newly enhanced and closely aligned with the ABV exam, AICPA's ABV Exam Review Course is the only comprehensive program backed by the resources and collective expertise of business valuation professionals associated with the nation's premier membership organization for CPAs, the AICPA. The two-day ABV Exam Review Courses are offered in selected cities nationwide. Dates and locations for the ABV review courses are posted on this Web site.

Q One of the criteria for maintaining the ABV credential is that each credential holder must complete sixty hours of related CPE during each three-year period subsequent to obtaining the ABV credential. How do you determine if the CPE is related?

A For the CPE to be deemed related, it must add 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 ABV credential holder. These can be found in the ABV Candidate's Handbook and Exam Reference Guide.

Q What are some of the CPE categories or subjects that the ABV Credential Committee recommends as part of the body of knowledge for the ABV holder?

A The recommended CPE topics considered to be related to business valuation fall into several broad categories including:

· Security Market Operations

· Research Techniques and Research Tools

· Company, Industry and Economic Data Analysis

· Valuation Calculations and Conclusions

· Reporting Standards and Report Preparation

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

A The period begins at the end of the year you attained the ABV credential (not the date of the exam). For example, if you received the 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.

Q What is the correct use of the ABV credential?

A Since the ABV credential is awarded only to members of the AICPA, we suggest you use "ABV" after the "CPA" acronym. Although there is no prescribed format, we have designed our logo as "CPA/ABV". Some members spell out "Accredited in Business Valuation" on their business cards or firm letterhead. Please note, however, like the use of CPA, the use of ABV on letterhead, business cards, and other marketing materials is governed by the rules of the Board of Accountancy in the state(s) where you practice.

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 ABV credential, unless there is factual proof of real or potential harm. If you check with your State Board of Accountancy and run into a problem in using the credential, contact our Professional Ethics Division (ethics@aicpa.org).

Q May a firm include the credential "Accredited in Business Valuation" or "ABV" on its letterhead and in marketing materials?

A It is permissible under AICPA Ethics Rule 502 for a firm to hold itself out as "Accredited in Business Valuation" or "ABV" and to use the ABV credential on its letterhead and in marketing materials only if all partners or shareholders of the firm currently have the ABV credential. An individual member who holds the credential may use it after his or her name. Again, you should check with your respective State Board of Accountancy to determine if there are other rules that may be imposed.

Q Where can I find additional information about the ABV credential and its benefits?

A For questions about the ABV Credential program contact the ABV Hotline by calling (888) 777-7077; e-mail (abv@aicpa.org); or in writing.

Please address correspondence to:

AICPA

Coordinator – ABV Certification Program

220 Leigh Farm Rd.

Durham, NC 27707