Regulatory Standards & Ethical Practices Flashcards
7 cards from real CMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Standards & Ethical Practices flashcards as text
Under USPAP, which of the following best describes a 'jurisdictional exception'?
Answer: A legal requirement that overrides a specific USPAP rule
A jurisdictional exception applies when a specific law or regulation conflicts with a USPAP requirement, allowing the appraiser to comply with the law instead.
Which federal act primarily governs the environmental disclosure obligations relevant to mineral appraisers assessing contaminated properties?
Answer: CERCLA (Superfund)
CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) governs liability and cleanup of contaminated sites, which directly affects mineral property valuations.
A CMA appraiser is hired by a mining company and later receives a request from a regulatory agency for the same property's appraisal file. What is the correct USPAP-compliant action?
Answer: Provide the file only with the client's consent or a valid legal order
USPAP's Confidentiality Rule requires appraiser consent from the client or a lawful legal order before disclosing confidential assignment information.
The USPAP Competency Rule requires an appraiser who lacks knowledge for a specific assignment to:
Answer: Acquire the necessary competency before completing the assignment or disclose the limitation
USPAP requires appraisers to either acquire the necessary competency prior to completing the assignment or disclose the lack of knowledge and describe steps taken to address it.
Which organization administers the National Uniform Licensing and Certification Examination for appraisers, including those in the minerals sector?
Answer: The Appraisal Foundation
The Appraisal Foundation, through the Appraiser Qualifications Board (AQB), sets the standards for appraiser licensing and certification examinations nationwide.
In mineral appraisal, what does 'arm's length transaction' mean when used as a market evidence basis?
Answer: A transaction where both parties acted knowledgeably and free of compulsion
An arm's length transaction is one where buyer and seller are independent, knowledgeable, and acting in their own self-interest without duress.
An appraiser who knowingly accepts an assignment contingent on the appraiser reporting a predetermined value is violating which USPAP rule?
Answer: Ethics Rule — Management section
The Management section of the USPAP Ethics Rule prohibits accepting assignments where compensation is contingent on reporting a specific value.