In an appraisal review, the reviewer's client asks whether the reviewed report 'complies with USPAP.' The reviewer's opinion on that question is:
Correct Answer
D) A legitimate review conclusion the reviewer must develop and support
A review can legitimately address USPAP compliance when that is part of its identified purpose and scope. Develop supported findings about the work rather than presume a certification guarantees compliance. The review is a professional opinion, not the state regulator’s disciplinary adjudication.
Why This Is the Correct Answer
Option D is correct because a USPAP-compliance opinion is a legitimate appraisal review conclusion when it falls within the review's identified purpose and scope. The reviewer must develop supported findings about the work under review rather than presume compliance. It remains a professional opinion, not a disciplinary ruling.
Why the Other Options Are Wrong
Option A: Outside the scope of any professional standard
Option A says the question is outside the scope of any professional standard. In fact appraisal review is itself governed by USPAP review standards, and the reviewer's objective can include assessing compliance with standards.
Option B: Prohibited — only state boards judge compliance
Option B claims the opinion is prohibited because only state boards judge compliance. A state board's disciplinary decision is a different thing; a reviewer can still give a supported professional opinion on compliance as part of a review assignment.
Option C: Automatic — any signed and certified report is presumed fully compliant
Option C says any signed and certified report is presumed fully compliant. A certification is the appraiser's own statement, and a reviewer must examine the work and support findings rather than accept the certification as proof.
Review Opinions Need Support
A compliance conclusion is a review opinion, and a review opinion needs analysis behind it. A signature on the original report is a claim, not evidence.
How to use: Use this when a question asks whether a reviewer can comment on whether a report follows USPAP.
Exam Tip
Distinguish a reviewer's professional opinion from a regulator's enforcement decision; both can address compliance, but they are different roles.
Common Mistakes to Avoid
- -Assuming a signed certification proves the report complies
- -Believing only a state board may express any opinion about USPAP compliance
- -Giving a compliance conclusion without developing support for it
Concept Deep Dive
Analysis
This question tests whether a reviewer may give an opinion on USPAP compliance of the work under review. The purpose of an appraisal review relates to the reviewer's objective, and that objective can include compliance with standards. If it is part of the identified purpose and scope, the reviewer must develop and support the conclusion like any other review opinion.
Background Knowledge
Appraisal review is the act of developing and communicating an opinion about the quality of another appraiser's work. The reviewer identifies the review's purpose, such as completeness, accuracy, adequacy, relevance, reasonableness or compliance, and then develops a scope of work sufficient to support the review opinions.
Real-World Application
A lender's quality-control department engages a reviewer to determine whether a residential report meets USPAP. The reviewer examines the report and the data, identifies an unexplained excluded approach and unsupported adjustments, and states supported conclusions about compliance in the review report.
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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