Under a free paraphrase of the USPAP DEFINITIONS, which statement best describes bias?
Correct Answer
A) A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment
Free paraphrase: bias is a preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment. Assignment Results, Extraordinary Assumption, or Client do not define bias.
Why This Is the Correct Answer
Option A is correct because USPAP defines bias as a preference or inclination that precludes an appraiser's impartiality, independence or objectivity in an assignment. This ties directly to the ETHICS RULE requirement to perform assignments with impartiality, objectivity and independence.
Why the Other Options Are Wrong
Option B: An appraiser’s opinions and conclusions developed specific to a particular assignment for a client
Option B, an appraiser's opinions and conclusions developed specific to an assignment, paraphrases the definition of assignment results, not bias.
Option C: Assumptions that, if found to be false as of the effective date, could alter the appraiser's opinions or conclusions
Option C, assumptions that could alter the opinions if found false as of the effective date, describes an extraordinary assumption, not bias.
Option D: The party or parties who engage an appraiser by employment or contract in a specific assignment
Option D, the party who engages an appraiser by employment or contract in a specific assignment, describes the client, not bias.
Bias blocks the three I's
Bias blocks impartiality, independence and objectivity. If a preference gets in the way of those, it is bias.
How to use: Use this to spot the bias definition among similar-looking definitions.
Exam Tip
When definitions are mixed together, match key words: bias goes with preference and impartiality, client with engagement, assignment results with opinions.
Common Mistakes to Avoid
- -Confusing bias with assignment results
- -Mixing up the definitions of client and intended user
- -Thinking bias applies only to intentional favoritism
Concept Deep Dive
Analysis
This question tests whether you can match the USPAP definition of bias among several other definitions. Bias is a preference or inclination that precludes impartiality, independence or objectivity in an assignment. The distractors are definitions of assignment results, extraordinary assumption and client.
Background Knowledge
USPAP added a definition of bias to clarify what can undermine an appraiser's impartiality, independence and objectivity. Bias can arise from personal interests, preferences or inclinations and is incompatible with the ETHICS RULE. Recognizing bias is part of maintaining the public trust USPAP aims to protect.
Real-World Application
An appraiser notices she is inclined to favor sales from a neighborhood she grew up in. She recognizes this as a potential bias and checks that her comparable selection is based on market evidence.
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