Under 2024 USPAP Standards Rule 3-2, which statement correctly paraphrases an Appraisal Review development problem-identification duty?
Correct Answer
D) Identify the review problem: users, use, purpose and work under review
SR 3-2 identifies the review problem: relevant parties, intended use, purpose, work under review and effective date, together with other relevant conditions. It does not replace Standard 4 reporting or restrict review to a certification checklist.
Why This Is the Correct Answer
Option D is correct because SR 3-2 requires the reviewer to identify the review problem, including the client and other intended users, the intended use, the purpose and the work under review. The rule also covers items such as the effective date and other relevant conditions. Option D is a fair paraphrase of these problem-identification duties.
Why the Other Options Are Wrong
Option A: Perform only a signed certification, with no other development steps required
Option A is wrong because a signed certification alone does not satisfy appraisal review development. SR 3-2 requires the reviewer to identify the review problem, and other development steps also apply.
Option B: Replace all of the Standard 4 reporting duties with a checklist
Option B is wrong because SR 3-2 is a development rule and does not replace the Standard 4 reporting duties with a checklist. Reporting requirements remain in effect.
Option C: Skip identifying the work under review if the client supplies it
Option C is wrong because the reviewer must identify the work under review and its relevant characteristics even when the client supplies it. Receiving the work from the client does not remove this duty.
Review starts with who, why, what
Before judging the work, the reviewer identifies who the users are, why the review is done, and what work is being reviewed.
How to use: Use this to check whether an option lists the problem-identification steps of an appraisal review.
Exam Tip
Development rules and reporting rules are separate. An option that claims a development rule replaces reporting duties is a warning sign.
Common Mistakes to Avoid
- -Thinking a signed certification alone completes review development
- -Skipping identification of the work under review because the client provided it
- -Confusing Standard 3 development duties with Standard 4 reporting duties
Concept Deep Dive
Analysis
This question tests the problem-identification duties in Standards Rule 3-2 for appraisal review development. The reviewer must identify elements such as the client and intended users, intended use, purpose, and the work under review. Options that skip these steps or substitute certifications or checklists misread the rule.
Background Knowledge
Standard 3 governs appraisal review development, and Standard 4 governs appraisal review reporting. Like an appraisal, a review starts with problem identification: who the users are, the intended use, the purpose, the work under review and other relevant conditions. Clear problem identification lets the reviewer set an appropriate scope of work.
Real-World Application
A lender asks a review appraiser to evaluate a residential appraisal report. The reviewer first identifies the lender as the client, the intended use, the purpose of the review and the specific report under review before deciding the review's scope. Only then does the reviewer analyze the work.
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