CGA CGA Appraisal Standards & Ethics 2

Question 1

Under USPAP's Ethics Rule, which of the following constitutes an act of misconduct?

Accepted Answer

Accepting an assignment where compensation is contingent on a specific value outcome

Answer

Accepting contingency-based fee arrangements tied to a predetermined value is expressly prohibited under the USPAP Ethics Rule as it compromises impartiality.

Question 2

What does the term 'scope of work' mean in the context of a USPAP-compliant appraisal?

Accepted Answer

The type and extent of research and analyses performed in an appraisal assignment

Answer

Scope of work refers to the type and extent of research and analyses performed to develop credible assignment results under USPAP.

Question 3

Which of the following best defines 'bias' as it relates to appraisal ethics?

Accepted Answer

A preference or inclination that inhibits impartial judgment

Answer

Bias is a preference or inclination that prevents objective analysis, which USPAP prohibits through its independence requirements.

Question 4

An appraiser who is completing an assignment involving a property type with which they have no prior experience must:

Accepted Answer

Disclose the lack of knowledge and take steps to acquire necessary competency before completing the assignment

Answer

The Competency Rule requires the appraiser to disclose the deficiency and either gain competency before the assignment or associate with a competent appraiser.

Question 5

What is the definition of 'intended use' in USPAP?

Accepted Answer

The use or uses of an appraiser's reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client

Answer

Intended use is how the client or other intended users will use the appraisal results, and it must be clearly identified at the beginning of an assignment.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA CGA Appraisal Standards & Ethics 2