BCA Professional Ethics & Standards 2

Question 1

A BCA appraiser is asked by a client to 'find a way' to reach a predetermined value. The correct response is to:

Accepted Answer

Decline the assignment and explain why

Answer

Accepting an assignment with a predetermined conclusion violates USPAP's prohibition on advocacy and the BCA Code of Ethics.

Question 2

Which of the following best describes the concept of 'professional independence' in business appraisal?

Accepted Answer

Forming opinions free from client pressure or personal interest

Answer

Professional independence means the appraiser's conclusions are based solely on evidence and analysis, not external pressure.

Question 3

Under BCA ethical standards, which situation requires an appraiser to disclose a potential conflict of interest?

Accepted Answer

Owning stock in the subject company being appraised

Answer

Ownership of stock in the subject company creates a financial interest that must be disclosed as a conflict of interest.

Question 4

A BCA appraiser discovers material new information after delivering the final report. The most appropriate action is to:

Accepted Answer

Notify the client and issue a corrected or supplemental report if warranted

Answer

Post-delivery discovery of material information requires notification to the client and potentially issuing an amended report.

Question 5

Which element is NOT required in a proper BCA appraisal report signature block?

Accepted Answer

Client's approval of the value conclusion

Answer

The client does not approve the value; the appraiser certifies their independent opinion, date, and compliance with standards.

(BCA) Business Certified Appraiser Practice Test