A reviewer is engaged today to evaluate the quality of an appraisal with a prior effective date. What must the reviewer identify in defining the review problem?
Correct Answer
D) The work under review, the review’s effective date and other elements
Identify the appraisal or appraisal-review work being reviewed and the review’s effective date, along with the client/users, intended use, purpose, and other applicable review-problem elements. The original appraisal’s effective date and the review’s effective date serve different purposes and must not simply be treated as interchangeable. A review need not always include the reviewer’s own property-value opinion.
Why This Is the Correct Answer
Option D is correct because Standard 3 requires the reviewer to identify the work under review and its relevant characteristics, along with the review's effective date and other elements such as the client, intended users, intended use and purpose. The review's effective date and the original appraisal's effective date serve different purposes. Listing these elements together is what defines the review problem.
Why the Other Options Are Wrong
Option A: The original value opinion, rather than the work under review
Option A says to identify the original value opinion rather than the work under review. The reviewer must identify the work under review itself, and a review need not include the reviewer's own value opinion, so this reverses the requirement.
Option B: The date on which the client paid the reviewer’s fee, and nothing else
Option B, identifying only the date the client paid the reviewer's fee, is wrong. The payment date is not a review-problem element, and saying nothing else is needed ignores the work under review and the review's effective date.
Option C: The original appraiser’s effective date, reused as the review’s date
Option C, reusing the original appraiser's effective date as the review's date, is wrong because the two dates are distinct. The review has its own effective date, which is not simply interchangeable with the effective date of the appraisal being reviewed.
Two works, two dates
The appraisal under review has its date; the review has its own date. Identify the work under review and keep the dates separate.
How to use: Use this when a review question mixes up the original effective date with the review date.
Exam Tip
When a review question offers an answer that reuses the original appraisal's effective date for the review, check whether it treats two distinct dates as one.
Common Mistakes to Avoid
- -Treating the original appraisal's effective date as the review's effective date
- -Assuming a review must include the reviewer's own value opinion
- -Leaving out identification of the work under review
Concept Deep Dive
Analysis
This question tests the elements a reviewer must identify to define an appraisal review problem. The key distinction is between the work under review, which has its own effective date, and the review itself, which has a separate effective date. The best answer names the work under review, the review's effective date, and the other required elements.
Background Knowledge
An appraisal review is an opinion about the quality of another appraiser's work. Like an appraisal, it requires problem identification, including client, intended users, intended use, purpose, the work under review, the review's effective date, and assignment conditions. A reviewer may or may not develop an own opinion of value, depending on the scope of work.
Real-World Application
A lender's quality-control department hires a reviewer in October to evaluate an appraisal with a March effective date. The reviewer identifies the March appraisal as the work under review, sets the review's own effective date, and states the client, intended use and scope.
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