An appraiser discovers an error in data they previously relied on for a delivered report. What is required?
Correct Answer
C) Consideration of whether users must be notified
Why this is correct: USPAP requires appraisers to consider whether an error discovered after report delivery is significant enough to affect the user's reliance, and if so, to notify the user. Why the other choices are wrong: "Nothing, as the report was accurate when issued" ignores the duty to correct material errors. "A note in the workfile recording the discovery" is insufficient if users are affected. "Reissue of the report with a new effective date" would misrepresent the original effective date and market conditions. Exam tip: Upon discovering a material error, assess its impact and notify users if it affects their reliance on the report.
Why This Is the Correct Answer
Why this is correct: USPAP requires appraisers to consider whether an error discovered after report delivery is significant enough to affect the user's reliance, and if so, to notify the user. Why the other choices are wrong: "Nothing, as the report was accurate when issued" ignores the duty to correct material errors. "A note in the workfile recording the discovery" is insufficient if users are affected. "Reissue of the report with a new effective date" would misrepresent the original effective date and market conditions. Exam tip: Upon discovering a material error, assess its impact and notify users if it affects their reliance on the report.
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