An extraordinary assumption proves false after the report is delivered. What follows?
Correct Answer
B) The conclusions may no longer be reliable
Why this is correct: An extraordinary assumption is used because the information is uncertain. If it proves false, the conclusions based on that assumption may no longer be reliable, as disclosed in the report. Why the other choices are wrong: 'The report was defective when it was issued' is false; proper disclosure makes the report compliant. 'The appraiser must refund the fee' is not required by USPAP. 'The client must commission a second appraisal' is not automatic; the client decides based on reliability concerns. Exam tip: Extraordinary assumptions shift risk to the user; if false, the value conclusion may change, but the report itself remains compliant if properly disclosed.
Why This Is the Correct Answer
Why this is correct: An extraordinary assumption is used because the information is uncertain. If it proves false, the conclusions based on that assumption may no longer be reliable, as disclosed in the report. Why the other choices are wrong: 'The report was defective when it was issued' is false; proper disclosure makes the report compliant. 'The appraiser must refund the fee' is not required by USPAP. 'The client must commission a second appraisal' is not automatic; the client decides based on reliability concerns. Exam tip: Extraordinary assumptions shift risk to the user; if false, the value conclusion may change, but the report itself remains compliant if properly disclosed.
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