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 USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
A client sends comments disputing the appraiser's adjustment for condition. What is the appropriate response?
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