A reviewer who identifies a Standards violation in a report under review:
Correct Answer
D) reports the supported finding within the review’s scope and purpose
Develop and support findings about the reviewed work within the review’s identified purpose and scope. USPAP does not impose a universal complaint duty for every reviewer finding, but applicable law or program rules may separately require a referral; do not imply reporting to regulators is always optional.
Why This Is the Correct Answer
Option D is correct because a reviewer must state opinions and conclusions about the work under review, including the reasons for any disagreement, within the review's purpose and scope. USPAP does not itself require a regulatory complaint for every finding, though applicable law or program rules may separately require a referral.
Why the Other Options Are Wrong
Option A: must file a regulatory complaint about the issue with the state board
Option A says the reviewer must file a regulatory complaint with the state board. USPAP does not impose a universal complaint duty on reviewers, although other law or program rules may require referral in some situations.
Option B: must withdraw from any review that turns up a Standards issue
Option B says the reviewer must withdraw from any review that turns up a Standards issue. Finding problems is the purpose of a review; the reviewer reports the supported findings rather than withdrawing.
Option C: is prohibited by USPAP from ever referring a matter to a regulator
Option C says USPAP prohibits ever referring a matter to a regulator. USPAP contains no such prohibition, and applicable law or program rules may require referral.
Review, support, report
A reviewer's job is to support findings and report them within the review's scope.
How to use: Use this to judge what a reviewer must do after spotting a problem.
Exam Tip
Be cautious of options that impose a duty USPAP does not create or that prohibit an action other laws may require.
Common Mistakes to Avoid
- -Believing USPAP requires every review finding to be reported to a regulator
- -Thinking USPAP forbids regulatory referrals
- -Withdrawing from a review once a problem is found
Concept Deep Dive
Analysis
This question tests a reviewer's duties when finding a Standards issue. The reviewer develops and reports supported findings about the work under review within the identified purpose and scope of the review. USPAP does not impose a universal complaint or withdrawal duty, nor does it bar referrals.
Background Knowledge
Appraisal review under Standards 3 and 4 involves developing and reporting an opinion about the quality of another appraiser's work. The scope of the review and its intended use define what the reviewer analyzes and reports.
Real-World Application
A lender's review appraiser finds that a report omitted analysis of a recent prior sale. She documents the deficiency and its effect on credibility in her review report and follows any separate lender policy on referrals.
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