How long must a report be retained compared with the workfile?
Correct Answer
A) The report is retained within the workfile itself
Why this is correct: USPAP Standards Rule 2-3 requires the workfile to include a true copy of the appraisal report. Therefore, the report is retained as part of the workfile for the same mandatory period (typically five years or longer for certain engagements). Why the other choices are wrong: "The report must be kept twice as long as the file" is not a USPAP requirement. "The report need not be retained by the appraiser" is false; retention is required. "The report is retained by the client, not the appraiser" is incorrect; the appraiser must retain a copy. Exam tip: The report is part of the workfile; they are retained together.
Why This Is the Correct Answer
Why this is correct: USPAP Standards Rule 2-3 requires the workfile to include a true copy of the appraisal report. Therefore, the report is retained as part of the workfile for the same mandatory period (typically five years or longer for certain engagements). Why the other choices are wrong: "The report must be kept twice as long as the file" is not a USPAP requirement. "The report need not be retained by the appraiser" is false; retention is required. "The report is retained by the client, not the appraiser" is incorrect; the appraiser must retain a copy. Exam tip: The report is part of the workfile; they are retained together.
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