The surveyor claims 20 yr surveying experience, USCG Master's rating, and is a former Safety Engineer. He said that he saw no need for a compression check since the engine started right away.
The engine sounded similar my 3 cylinder Universal on my 1996 Catalina 30 when it was running at cruising speed, but it produced more smoke, which I was told would go away after it is run for a while. Back soot developed on flat surfaces around the exhaust exit after the 30 minute sea trial (discovered when I was cleaning the boat in the slip).
Later, when the diesel mechanic started at the engine, a noticible light blue and white smoke was evident.