BCA Professional Ethics & Standards 5

Question 1

Under BCA standards, which type of appraisal assignment requires the highest level of scope and documentation?

Accepted Answer

A conclusion of value used in federal court litigation

Answer

Litigation assignments, especially in federal court, require the most rigorous scope, documentation, and compliance with standards.

Question 2

A BCA appraiser who co-signs a report prepared primarily by an unlicensed associate is:

Accepted Answer

Ethically required to disclose the associate's role in the certification

Answer

The signing appraiser must disclose any assistance received in the report certification, accepting responsibility for the work.

Question 3

Which of the following is an acceptable way to handle a second request for an appraisal of the same subject by a different client?

Accepted Answer

Treat it as a new assignment with its own scope and certification

Answer

Each engagement is a separate assignment requiring its own analysis, effective date, and certification for the new client.

Question 4

The BCA definition of 'hypothetical condition' in an appraisal refers to:

Accepted Answer

A condition that is assumed false for purposes of the analysis

Answer

A hypothetical condition is an assumption that is contrary to known facts but used for a specific analytical purpose.

Question 5

A BCA appraiser who regularly performs appraisals for the same bank lender without disclosing the ongoing relationship is:

Accepted Answer

Violating disclosure requirements for business relationships

Answer

Ongoing business relationships with clients must be disclosed because they may impair or appear to impair the appraiser's independence.

(BCA) Business Certified Appraiser Practice Test