Red Flags in Small Business Valuations
Author: Robert K Minniti
| CPE Credit: |
2 hours for CPAs |
Dr. Minniti reviews the standards for properly preparing a small business valuation report and discusses what valuators should be aware of to ensure an accurate valuation opinion is released. In this on-demand lesson, you’ll learn to recognize common errors in business valuation, describe what can be presented in a court of law and used in litigation cases, recognize common errors small businesses make about depreciation, and more.
Publication Date: February 2019
Designed For
CFOs, CEOs, CPAs, CFEs, CFFs, CIAs, MAFFs, CVAs, ABVs, CMAs, business owners, business managers, internal auditors, external auditors, corporate accountants, government accountants and risk management personnel.
Topics Covered
- Red flags in a small business valuation
- Valuing a Business
- Valuation Engagements
- Elements of a Business Valuation
- Basic Analysis of a Business Valuation
- Valuation Risk
- Common Valuation Errors
- Business Sales vs Asset Sales
- Error vs. Fraud
- Ownership Red Flags
- Vendor Red Flags
- Customer Red Flags
- Small Business Financials
- Overvalued Assets
- Depreciation
- Types of Inventory
- Inventory Valuation Methods
- Inventory Tracking Methods
- Asset Sales
- Undervalued Liabilities
- Audit Trail
- Journal Entries
- Transactions
- Reconciliations
- Owner Skimming
- Refund Frauds
- Employee Refunding
- Falsification of Owner Hours Worked
- Unrealistic Estimates
- Cybersecurity Issues
Learning Objectives
- Identify red flags in a small business valuation
- Recognize standards for preparing a small business valuation
- Describe how a basic analysis performed for a small business valuation
- Describe true statements about small business valuation
- Recognize common errors in a business valuation
- Identify risks a valuator should consider
- Differentiate types of fraud
- Describe a conclusion of value
- Identify true statements regarding an asset sale
- Recognize the number one data break which targets a small business
- Describe what can be presented in a court of law and used in litigation cases
- Identify which type of transaction is difficult to do with skimming
- Recognize common errors small businesses make with regard to depreciation
- Differentiate correct statements about cybersecurity
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
