USPAP Exam 2024 with 100% correct answers verified., Exams of Accounting

Download USPAP Exam 2024 with 100% correct answers verified. and more Exams Accounting in PDF only on Docsity! USPAP Exam 2024 with 100% correct answers verified. Financial chaos began in the US during the - Answer- 1929 stock market crash after the great depression In the 1950s-70s double continued with - Answer- -Works related areas -Property taxation -Federal housing programs 1990s trouble was because of... - Answer- Mortgage scams and illegal house flipping. 1980s trouble was because of... - Answer- the Savings and Loans Crisis 1990s to 2000s trouble was from... - Answer- identity theft and appraisal report tampering. Prior to 1930s, appeasing properties could be done by... - Answer- mortgage brokers and real estate agents In the wake of the stock market crash and economic depression the first.... - Answer- group of appraisers were formed Issues recognized by new professional appraisers - Answer- -Provide credible services -Have services provided by ethical and competent individuals -Foster public trust Ad-hoc Committee - Answer- Eventually became USPAP -find market value -develop independent authority TAF - Answer- The Appraisal Foundation Three boards on TAF - Answer- -The Appraiser Qualifications Board -The Appraisal Standards Board -The Board of Trustees USPAP has no legal authority but... - Answer- NYS enforces it! Congress contributed to USPAPs acceptance by... - Answer- identifying it as the generally accepted set of standard practices for the profession. Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) provided... - Answer- Recognition and authorized federal institutions to reference USPAP Uniform Relocation Assistance and Real Properties Acquisition Policies Act - Answer- Where the executive branch followed congress by referencing USPAP With Office of Management and Budget (OMB) Circlular A-129, January 11, 1993.... - Answer- Other federal agencies recognized USPAP The IRS bulletin 2006-46, November 13, 2006 generally - Answer- Accepted USPAP appraisal standards, defining a "qualified appraisal" -Supervises agencies and appraisers and insures government has enough controls in all real estate activity to protect federally regulated financial institutions from loss. What does the Preamble contain - Answer- -The overall purpose and strict of USPAP Bias - Answer- A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment Extraordinary Assumption - Answer- Involves a situation directly related to a specific assignment as of the effective date of the assignment results. -If an appraiser did not inspect the interior of a property, the appraiser might use as extraordinary assumption to produce credible results and alert the client and intended users to the uncertainty of the assignment results. Ex. Snow on the roof Hypothetical Condition - Answer- A condition, directly related to a specific assignment, which is contrary to what is known by the appriser to exist on the effect date of the assignment results, but is used for the purpose of analysis. -These are typically "what if" scenarios supposed for the purpose of analysis. -Ex. What is zoning was different, what if its a new build. -Most common on new builds Exposure Time - Answer- The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consumption of a sale at market value on the date of the appraisal. Exposure time always occurs... - Answer- PRIOR (before) to the effective date of the appraisal. Exposure time is based on... - Answer- Analysis of past events and assumes a competitive and open market. Cost- Fact or Opinion - Answer- FACT/Estimate of fact -Ex. When an appraiser is asked to estimate the cost of improvements for a property. Price- Fact or Opinion - Answer- Becomes fact once stated! -An appraiser can estimate the price a homeowner should list a property for, but once it is stated by the owner it becomes fact! Value- Fact or Opinion - Answer- Always an opinion! Client definition - Answer- The party who engaged, by employment or contract, an appraiser in a specific assignment. -Can be an individual, group, or entity. -Can contact appraiser individually or through an agent. Assignment conditions are... - Answer- Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scape of work. Assignment Laws include... - Answer- constitutions, legislative and court-made law, administrative rues and ordinances. The regulations include rules or orders having legal force issued by an administrative. Assignment conditions are addressed both in... - Answer- Scope of Work and the development standards An assignment is a... - Answer- Valuation service that is provided by an appraiser as a consequence of an agreement with a client. Assignment results are... - Answer- The appraisers opinions and conditions made by a specific assignment. Assignment results are NOT - Answer- Physical Characteristics Intended Use- - Answer- Is critical to the scope of work decision. -Determined after talking with the client AT TIME OF THE ASSIGNMENT Intended User - Answer- Is the client and any other party identified as users by the appraiser. -Also determined after talking with the client AT TIME OF THE ASSIGNMENT An appraiser's report is either... - Answer- Written or given orally. An appraisers signature is... - Answer- Personalized evidence that authenticated the appraiser has performed and is deposable for the contents of the report. What appraisal services are covered by USPAP? - Answer- -Appraisals -Appraisal Review -Any other services choosing to represent as "appraiser" What property types are covered by USPAP? - Answer- Tangible and Intangible Valuation Services pertain to... - Answer- Anyone evaluating a property. Could be appriser or even Real Estate brokers Appraisal Practises pertain to... - Answer- Only Real Estate Appraisers. Criteria for being an "appraiser" - Answer- -Presenting oneself as an appraiser exclusively. -Competence -Service must be independent, impartial and objective. Appraiser Definition - Answer- Independent, impartial and objective. Responsibilities of an individual regarding user expectations - Answer- -Identify capacity and intended user -When acting outside of appraisal practice, one should mis-represent themselves (saying its an appraisal when your brokering a deal) -Mustn't violate public trust. An appraiser must act... - Answer- Competently in a manner that is independent, impartial and objective. An appraiser must maintain data, information and analysis necessary to support their opinions for appraisal in accordance with... - Answer- Record Keeping Rules For all assignments an appraiser must comply with the... - Answer- Competency rules and jurisdictional exceptions rules. USPAP obligations for Valuation services performed by an individual outside of appeals practice. - Answer- An individual who acts in other professional roles such as attorneys, accountants, brokers etc. Must insure they are not misleading clients when acting in other roles. Valuation service performed by an individual acting in the role of an appraser - Answer- Appraisal Practice When performing valuation services outside of appraisal practice, appraisers must be careful not to... - Answer- mislead clients about their intended roles. For assignments other than appraisal and appraisal review, there are no... - Answer- Record Keeping or scope of work requirements in USPAP What appraisal services are covered by USPAP? - Answer- Appraisal, Appraisal Review, Any other services choosing to represent as "appraiser. Appraisal practice is a ________________ of the broader concept of valuation services. - Answer- Subset! General Conduct: An appraiser must - Answer- -Perform ethically and competently -Work in accordance to USPAP -Not engage in criminal conduct -Not willingly or knowingly violate the requirements of the Record Keeping Rule Development Issues- An appraiser must - Answer- -Perform with impartiality, objectivity and independence without personal interest -Not perform with bias -Not advocate cause or interest in any party -Not accept assignments that come with predetermined conclusions -Not misrepresent his role -Not rely on unsupported conclusions relating to race, color, religion, national origin, gender, material status, etc. -Not perform in a neglegent manner Communications/reporting issues- An appraiser must not... - Answer- -Communicate assignment results with intent to mislead -Use or communicate a report knowing its wrong -Knowingly let someone else communicate a report that is misleading One must save a work file for... - Answer- 5 years after creation, or 2 years after final disposition of any judicial proceeding in which the appraiser gave testimony. WHICHEVER EXPIRES LAST! An appraiser must make appropriate custody arrangements for the work file with all those that may need access to it. They include... - Answer- -State regulatory agencies -Compliance with due process law -Other duly authorized professionals -Ex-peers Failure to comply with record keeping rules violate... - Answer- Ethics Rules! Competency requirements... - Answer- -The ability to property identity the problem to be addressed. -The knowledge and experience to complete the assignment -Ability to comply with laws and regulations. If an appraiser determines they are not competent... - Answer- -They must disclose that lack on knowledge before accepting the assignment -Take steps to become competent -Describe lack of competency in the report and the steps taken to become competent. If one discovers they are not competent DURING the assignment... - Answer- The same rules apply. -Notify the client -Take steps to become competent -Describe lack of competency in the report and the steps taken to become competent. If the assignment con not be completed competently, the appraiser must... - Answer- Deline the assignment or withdraw from it. Can you accept an assignment knowing you will get paid when and if it closes? - Answer- NO! It is not ethical! If disclosed in a work file, can an appraiser accept a fee to acquire an assignment? - Answer- YES! It has to be disclosed. Scope of work includes: - Answer- -The extent to which the property is identified -The extent to which tangible property is inspected -The type and extent of data researched -The type and extent of analysis applied to create opinions and conclusions. Appraisers have _______________ _______________ and _______________ _______________ in determining the appropriate scope of work in an assignment. - Answer- Broad flexibility, significant responsibility. Credible assignment results require... - Answer- Relevant evedence and logic Things that Scope of Work, works to identify - Answer- -The client and other intended users -Intended use of the appraisers opinions and conclusions -Type and definition of value -Effective date of the appraisers onions and conclusions -Subject of the assignment and its relevant characteristics -Assignment conditions Assignment conditions include: - Answer- -Assumptions -Extraordinary assumptions -Hypothetical conditions -Law and regulations -Jurisdictional exceptions -Other conditions that affect the scope of work If scope of work can not be found... - Answer- -The appraiser must withdraw from the assignment. -Modify assignment conditions to expand options.