Under 2024 USPAP Standards Rule 4-2, which statement best describes the appraiser's obligation for the content of a written appraisal review report?
Correct Answer
B) Provide required review information and supporting reasoning sufficient for the intended users
A written appraisal-review report must provide the information required for the intended users to understand the review, including relevant purpose, scope, work reviewed and supported conclusions. SR 4-2 addresses written content; nonmisleading communication and development obligations still apply.
Why This Is the Correct Answer
Option B is correct because a written appraisal review report must provide sufficient information to enable the client and intended users to understand the rationale for the reviewer's opinions and conclusions. That includes the required review information, such as purpose, scope and work reviewed, plus supporting reasoning.
Why the Other Options Are Wrong
Option A: Omit all workfile support for the review when there is a sole client
Option A is wrong because a sole client does not permit omitting all workfile support for the review. Workfile duties apply to review assignments regardless of the number of clients.
Option C: Substitute the original appraiser’s certification for the reviewer’s own certification in the report
Option C is wrong because substituting the original appraiser's certification for the reviewer's own certification misrepresents who is responsible for the review. The reviewer certifies the reviewer's own work.
Option D: Hide the review’s purpose from the intended users under a confidentiality label
Option D is wrong because hiding the review's purpose under a confidentiality label prevents intended users from understanding the review. The purpose is part of the information users need, and confidentiality does not remove reporting duties.
Reviewers explain their rationale
A review report must let users understand why the reviewer reached each opinion, just as an appraisal report must.
How to use: Use this to pick answers that require sufficient information and reasoning in review reports.
Exam Tip
Answers that let a reviewer hide, omit or borrow content are usually wrong; look for sufficient information for intended users.
Common Mistakes to Avoid
- -Thinking review reports need less explanation than appraisal reports
- -Using the original appraiser's certification in a review
- -Believing confidentiality allows hiding the review's purpose
Concept Deep Dive
Analysis
This question tests the content requirement for a written appraisal review report under SR 4-2. The report must give intended users enough information to understand the rationale for the reviewer's opinions and conclusions. Reject options that hide, omit or borrow content.
Background Knowledge
Appraisal review develops an opinion about the quality of another appraiser's work under Standard 3 and reports it under Standard 4. The review report must be clear, not misleading, contain sufficient information for intended users, and disclose assumptions, extraordinary assumptions, hypothetical conditions and limiting conditions. The reviewer signs a separate certification.
Real-World Application
A lender's review appraiser concludes that an original report's adjustments are unsupported. The review report states its purpose, the scope of the review, the work reviewed and the reasons for that conclusion. The reviewer signs the reviewer's own certification.
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?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam