During a hybrid assignment, an appraiser finds that the available information and current conditions cannot support credible results. What is the appropriate response?
Correct Answer
A) Fix the limitation with more work or allowed changes; otherwise withdraw
The appraiser must obtain information and perform work needed for credible results, or appropriately modify assignment conditions. A supported, permitted extraordinary assumption can sometimes resolve uncertainty when the applicable requirements are satisfied; it cannot contradict known facts or merely excuse an unsupported conclusion. If credible completion is still impossible, withdraw. A disclaimer, planned later review, or unsupported model substitution does not cure the problem.
Why This Is the Correct Answer
Option A is correct because the appraiser must fix the limitation with more work or allowed changes to the assignment conditions, and otherwise withdraw. USPAP states the appraiser must withdraw unless the appraiser can expand the scope to gather the information or use an extraordinary assumption, if credible results can still be developed. If the assignment cannot be completed competently, the appraiser must decline or withdraw.
Why the Other Options Are Wrong
Option B: Deliver the unsupported opinion along with a general disclaimer
Option B delivers the unsupported opinion along with a general disclaimer. A disclaimer does not make an unsupported opinion credible, so it does not cure the problem.
Option C: Deliver the unsupported opinion and ask a reviewer to fix it later
Option C delivers the unsupported opinion and asks a reviewer to fix it later. The appraiser is responsible for credible results at delivery, and a planned later review does not cure the deficiency.
Option D: Adopt an AVM figure, since the original data were inadequate
Option D adopts an AVM figure because the original data were inadequate. Substituting a model figure without support does not create credible results and simply replaces one unsupported number with another.
Fix it or leave it
If credible results are out of reach, either fix the gap with more work or a permitted change, or withdraw from the assignment.
How to use: Use this rule when an option proposes delivering a report the appraiser knows lacks support.
Exam Tip
Disclaimers, later reviews and unsupported substitutions do not cure a lack of credible support.
Common Mistakes to Avoid
- -Believing a disclaimer makes an unsupported opinion acceptable
- -Using an extraordinary assumption that contradicts known facts
- -Substituting an AVM figure for missing data without support
Concept Deep Dive
Analysis
This question tests the USPAP response when an assignment cannot produce credible results with the available information. The appraiser must either cure the problem, by expanding the scope or using a permitted extraordinary assumption where credible results can still be developed, or withdraw. Delivering an unsupported opinion is not an option.
Background Knowledge
USPAP's scope of work and competency rules require credible assignment results. When information is missing, the appraiser can gather more, change assignment conditions where permitted, or use an extraordinary assumption that meets the applicable requirements. An extraordinary assumption cannot contradict known facts or merely excuse an unsupported conclusion.
Real-World Application
In a hybrid assignment, the data collector could not access the interior, and recent storm damage is suspected. The appraiser asks the client to expand the scope to include an interior inspection; when the client declines and no supportable extraordinary assumption is possible, the appraiser withdraws.
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