A reviewer is asked to determine whether a report's data is accurate. The reviewer's scope of work should:
Correct Answer
D) Be identified and disclosed in the review report
Why this is correct: The governing concept is that a review is a separate appraisal service with its own scope-of-work obligation under USPAP. The reviewer must identify what they examined, what they independently verified, and what they accepted from the original report. This scope must be disclosed in the review report so users can understand the basis and weight of the reviewer's conclusions. Why the other choices are wrong: "Remain confidential to protect the review's integrity" is wrong because USPAP requires disclosure of the scope of work to ensure transparency. "Match the original appraiser's scope exactly" is wrong because a reviewer's scope is independent and may differ based on the review's purpose. "Be determined solely by the client's budget" is wrong because while budget is a factor, the scope must be sufficient to produce credible results, not dictated solely by cost. Exam tip: For any review assignment, remember the three-part disclosure: what you examined, what you verified, and what you accepted. It's a core USPAP requirement.
Why This Is the Correct Answer
Why this is correct: The governing concept is that a review is a separate appraisal service with its own scope-of-work obligation under USPAP. The reviewer must identify what they examined, what they independently verified, and what they accepted from the original report. This scope must be disclosed in the review report so users can understand the basis and weight of the reviewer's conclusions. Why the other choices are wrong: "Remain confidential to protect the review's integrity" is wrong because USPAP requires disclosure of the scope of work to ensure transparency. "Match the original appraiser's scope exactly" is wrong because a reviewer's scope is independent and may differ based on the review's purpose. "Be determined solely by the client's budget" is wrong because while budget is a factor, the scope must be sufficient to produce credible results, not dictated solely by cost. Exam tip: For any review assignment, remember the three-part disclosure: what you examined, what you verified, and what you accepted. It's a core USPAP requirement.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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