How long must a report be retained compared with the workfile?
Correct Answer
A) The report copy is kept in the workfile for the same period
The Record Keeping Rule requires a true copy of each transmitted written report in the workfile, maintained for the required retention period, so the report is kept for the same period as the workfile. This is not a true-copy duty created by SR 2-3 certification, and client retention does not substitute for appraiser custody or access arrangements.
Why This Is the Correct Answer
Option A is correct because the Record Keeping Rule requires the workfile to include true copies of all written reports, documented on any type of media. Because the report copy is part of the workfile, it is retained for the same required period. Client retention does not replace the appraiser's own retention or access arrangements.
Why the Other Options Are Wrong
Option B: The report must be kept twice as long as the file
Option B says the report must be kept twice as long as the file. USPAP sets no separate, doubled retention period for reports; the report copy is part of the workfile and shares its retention period.
Option C: The report need not be retained by the appraiser
Option C says the appraiser need not retain the report. The workfile must include true copies of all written reports, so the appraiser must keep them for the workfile's retention period.
Option D: The report is retained by the client, not the appraiser
Option D says the client retains the report instead of the appraiser. The client may keep its own copy, but that does not satisfy the appraiser's duty to keep a true copy in the workfile.
Report Lives in Workfile
The report copy sits inside the workfile, so it is kept for as long as the workfile is kept.
How to use: Use this when a question asks how long a report must be kept compared with the workfile.
Exam Tip
Treat the report as one component of the workfile rather than a document with its own separate retention rule.
Common Mistakes to Avoid
- -Thinking the client's copy satisfies the appraiser's retention duty
- -Keeping supporting data but discarding the transmitted report
- -Assuming reports and workfiles have different retention periods
Concept Deep Dive
Analysis
This question tests how report retention relates to the workfile. Under the Record Keeping Rule, the workfile must include true copies of all written reports, so the report is kept as part of the workfile. That means it is held for the same retention period as the rest of the workfile.
Background Knowledge
The Record Keeping Rule requires a workfile for each assignment, including true copies of written reports and summaries of oral reports. The appraiser must retain the workfile for the required period and have custody of it or appropriate access arrangements.
Real-World Application
An appraiser leaves a firm and wants access to her past reports for possible testimony. Because the true report copies are in the workfiles, she arranges continued access to those workfiles for the retention period.
More USPAP Questions
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