When must the assignment workfile be in existence under USPAP?
Correct Answer
C) Before a report issues; an oral summary is added soon after
A workfile must exist before issuance of a report. A written summary of an oral report must be added within a reasonable time after the oral report, consistent with the rule’s oral documentation requirements. Retain required records at least five years after preparation or at least two years after final disposition of a judicial proceeding in which related testimony was given, whichever expires later. Custody arrangements must preserve required access and retrieval.
Why This Is the Correct Answer
Option C is correct because a workfile must be in existence prior to the issuance of any report or other communication of assignment results. A written summary of an oral report must be added within a reasonable time after the oral report is issued. These match the option's statement that the workfile exists before a report issues and an oral summary is added soon after.
Why the Other Options Are Wrong
Option A: Within thirty days after each report has been delivered
Option A says the workfile must exist within thirty days after each report is delivered. The workfile must already exist before the report is issued, not afterward.
Option B: Only after a court or a regulator asks the appraiser for it
Option B says the workfile need exist only after a court or regulator asks for it. The workfile must exist before the report is issued, regardless of any later request.
Option D: Fully complete at the moment the engagement is first accepted
Option D says the workfile must be fully complete at the moment the engagement is first accepted. The workfile is built during the assignment and must exist before the report issues; it cannot be complete before the work is done.
File Before You Send
The workfile comes before the report goes out; only the oral report summary may follow.
How to use: Use this to answer timing questions about when a workfile must exist.
Exam Tip
Remember the oral-report exception: the written summary of an oral report is added within a reasonable time after the oral report.
Common Mistakes to Avoid
- -Believing the workfile can be assembled after delivery
- -Thinking a workfile is needed only if requested by a regulator
- -Forgetting the written summary requirement for oral reports
Concept Deep Dive
Analysis
This question tests the timing of workfile existence under the RECORD KEEPING RULE. A workfile must exist before any report or other communication of assignment results is issued. For oral reports, a written summary is added within a reasonable time after the oral report.
Background Knowledge
The RECORD KEEPING RULE requires a workfile for each appraisal and appraisal review assignment. It must exist before the report is issued, and oral report summaries are added within a reasonable time afterward. Workfiles must be retained for at least five years after preparation or at least two years after final disposition of a judicial proceeding in which related testimony was given, whichever expires later.
Real-World Application
An attorney asks an appraiser for a quick oral value opinion before a settlement conference. The appraiser has the supporting data in the workfile before speaking with the attorney. Shortly after the call, she adds a written summary of the oral report to the workfile.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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