BCA Professional Ethics & Standards 3

Question 1

A BCA appraiser is hired by opposing counsel in a litigation matter. Which disclosure obligation applies?

Accepted Answer

The appraiser must disclose the litigation context in the report

Answer

USPAP and BCA standards require disclosure of the intended use and client identity, including litigation contexts, in the appraisal report.

Question 2

Which of the following fee arrangements is considered ethical under BCA standards?

Accepted Answer

A flat fee regardless of the final value conclusion

Answer

Flat or hourly fees are ethical; contingency fees tied to the value conclusion compromise appraiser independence.

Question 3

The duty of confidentiality in business appraisal means an appraiser may NOT:

Accepted Answer

Share client information with a competitor without consent

Answer

Confidential client information cannot be disclosed to third parties, including competitors, without the client's consent.

Question 4

When a BCA appraiser updates a prior appraisal, the update must:

Accepted Answer

Be treated as a new assignment with full compliance with current standards

Answer

An update is a new appraisal assignment and must comply with current standards, including a new certification and effective date.

Question 5

A BCA appraiser who also serves as a business broker for the same transaction is:

Accepted Answer

Never permitted regardless of consent

Answer

Serving simultaneously as appraiser and broker on the same transaction creates an irreconcilable conflict of interest.

(BCA) Business Certified Appraiser Practice Test