Which duty is addressed by USPAP 2024 SR 3-1 in appraisal review development?
Correct Answer
B) Use appropriate review methods and avoid significant errors and careless performance
SR 3-1 addresses knowledge and correct use of review methods, significant errors and careless performance. Problem identification, including client and intended use, is addressed by SR 3-2; the standards are not interchangeable.
Why This Is the Correct Answer
Option B is correct because SR 3-1 requires the reviewer to be aware of, understand and correctly employ methods and techniques needed for a credible review. It also requires sufficient care to avoid errors that would significantly affect the reviewer's opinions and prohibits careless or negligent performance, such as a series of errors that together affect credibility. Using appropriate review methods and avoiding significant errors and careless work captures these duties.
Why the Other Options Are Wrong
Option A: Replace review development with a completed checklist of items
Option A says to replace review development with a completed checklist. A checklist may help organize work, but SR 3-1 requires correct use of the methods needed for a credible review, which a checklist alone does not replace.
Option C: Apply reporting rules instead of performing review development
Option C says to apply reporting rules instead of performing review development. SR 3-1 is a development requirement; reporting is addressed separately in Standard 4 and does not replace development.
Option D: Treat each disagreement with the reviewed work as proof that the work is defective
Option D says to treat each disagreement with the reviewed work as proof that it is defective. A reviewer must develop a credible, careful opinion; mere disagreement does not prove the reviewed work is deficient.
SR 3-1: methods and care
The first rule of each development standard is about competence: use the right methods and avoid significant and careless errors.
How to use: Use this when a question asks what SR 3-1 addresses.
Exam Tip
Match the rule number to its topic: SR 3-1 for methods and errors, SR 3-2 for problem identification. Options substituting checklists or reporting for development are distractors.
Common Mistakes to Avoid
- -Confusing SR 3-1 with SR 3-2 problem identification
- -Treating a reviewer's disagreement as proof of an error
- -Relying on a checklist in place of review development
Concept Deep Dive
Analysis
This question tests the content of Standards Rule 3-1. SR 3-1 sets general development requirements for reviewers: know and correctly use review methods, avoid significant errors, and avoid careless or negligent performance. Distinguish it from SR 3-2 (problem identification) and from the reporting rules in Standard 4.
Background Knowledge
Standard 3 sets out the development requirements for appraisal review. SR 3-1 covers methods, significant errors and careless performance, while SR 3-2 addresses identifying the problem, including the client, intended users and intended use.
Real-World Application
A reviewer evaluating a residential appraisal disagrees with one adjustment. Rather than labeling the report defective, she applies appropriate review methods to test whether the adjustment was supported, taking care not to make errors in her own analysis.
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