CGA Ethics Standards & Legal Compliance 3

Question 1

A client asks a CGA to appraise their jewelry 'as high as possible' for a divorce settlement. The appraiser should:

Accepted Answer

Provide an objective appraisal based on market evidence regardless of the client's request

Answer

Appraisers must provide objective, impartial valuations regardless of the intended use or the client's desired outcome.

Question 2

Under anti-money laundering (AML) regulations, a jeweler or appraiser in the US is required to file a Currency Transaction Report (CTR) when:

Accepted Answer

A cash transaction exceeds $10,000

Answer

Under the Bank Secrecy Act, businesses must file a CTR for cash transactions exceeding $10,000 to help detect money laundering.

Question 3

What does 'competency' mean in the context of USPAP ethics for gemstone appraisers?

Accepted Answer

Possessing the knowledge and experience necessary to complete the appraisal credibly

Answer

USPAP requires appraisers to have or acquire the knowledge and experience necessary to complete each specific appraisal assignment competently.

Question 4

Which of the following scenarios most likely constitutes insurance fraud involving a gemstone appraiser?

Accepted Answer

Knowingly overstating a gem's value to help a client collect a higher insurance payout

Answer

Knowingly inflating appraisal values to enable fraudulent insurance claims is a criminal act and a serious ethical violation.

Question 5

The Gemological Institute of America (GIA) code of ethics primarily emphasizes:

Accepted Answer

Integrity, objectivity, and advancing the public's trust in the gem and jewelry industry

Answer

GIA's code of ethics centers on maintaining integrity, objectivity, and public trust in the gemological profession.

(CGA) Certified Gemologist Appraiser Practice Test