An appraiser discovers an arithmetic error after delivering a report. What is required?
Correct Answer
A) Correct it and notify the client and intended users
Why this is correct: USPAP's Ethics Rule and Standards Rule 2-3 require an appraiser to promptly correct a significant error in a delivered report and notify the client and any intended users who received the report. This prevents reliance on misleading information. Why the other choices are wrong: The choice to wait until the client raises the matter first is incorrect; the appraiser has an affirmative duty to correct errors. The choice to note the error in the workfile and take no action is wrong; the error in the report itself must be addressed. The choice to issue a new report with a later effective date is false; this would misrepresent when the valuation opinion applies. Exam tip: Upon discovering an error, the required action is: correct, notify, and maintain the original effective date.
Why This Is the Correct Answer
Why this is correct: USPAP's Ethics Rule and Standards Rule 2-3 require an appraiser to promptly correct a significant error in a delivered report and notify the client and any intended users who received the report. This prevents reliance on misleading information. Why the other choices are wrong: The choice to wait until the client raises the matter first is incorrect; the appraiser has an affirmative duty to correct errors. The choice to note the error in the workfile and take no action is wrong; the error in the report itself must be addressed. The choice to issue a new report with a later effective date is false; this would misrepresent when the valuation opinion applies. Exam tip: Upon discovering an error, the required action is: correct, notify, and maintain the original effective date.
More reconciliation Questions
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
Reconciliation of the approaches to value is best described as which activity?
Significant appraisal assistance from a person who does not sign the report must be treated how?
In appraising a hotel as a going concern, what must be allocated?
What does it mean to say an approach is not applicable to an assignment?
Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
USPAP (Ethics & Standards)
15% of exam