Professional Ethics & Standards Flashcards
7 cards from real BCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Professional Ethics & Standards flashcards as text
A BCA appraiser is asked by a client to 'find a way' to reach a predetermined value. The correct response is to:
Answer: Decline the assignment and explain why
Accepting an assignment with a predetermined conclusion violates USPAP's prohibition on advocacy and the BCA Code of Ethics.
Which of the following best describes the concept of 'professional independence' in business appraisal?
Answer: Forming opinions free from client pressure or personal interest
Professional independence means the appraiser's conclusions are based solely on evidence and analysis, not external pressure.
Under BCA ethical standards, which situation requires an appraiser to disclose a potential conflict of interest?
Answer: Owning stock in the subject company being appraised
Ownership of stock in the subject company creates a financial interest that must be disclosed as a conflict of interest.
A BCA appraiser discovers material new information after delivering the final report. The most appropriate action is to:
Answer: Notify the client and issue a corrected or supplemental report if warranted
Post-delivery discovery of material information requires notification to the client and potentially issuing an amended report.
Which element is NOT required in a proper BCA appraisal report signature block?
Answer: Client's approval of the value conclusion
The client does not approve the value; the appraiser certifies their independent opinion, date, and compliance with standards.
When a BCA appraiser subcontracts part of an appraisal to a specialist, the primary appraiser's responsibility is to:
Answer: Disclose the assistance and take responsibility for the final report
The primary appraiser must disclose any assistance received and remains responsible for the overall report's integrity.
The BCA Code of Ethics requires that appraisers maintain working papers and supporting documentation for a minimum of:
Answer: 5 years
BCA standards align with USPAP's requirement to retain workfiles for at least five years after preparation or two years after final testimony, whichever is later.