Which describes Standard 1 and SR 1-1?
Correct Answer
A) Identify the problem, perform necessary competent analysis, and avoid significant errors and careless performance
Standard 1 requires problem identification, necessary scope and competent research and analysis. SR 1-1 addresses proper methods, significant errors and careless or negligent performance; proficiency must keep pace with applicable methods rather than freeze at initial licensure.
Why This Is the Correct Answer
Option A is correct because Standard 1 begins with problem identification and competent research and analysis, and SR 1-1 requires correct use of methods while barring substantial errors of omission or commission that significantly affect an appraisal. SR 1-1 also addresses careless or negligent performance. This choice captures those core duties.
Why the Other Options Are Wrong
Option B: Copy the client’s target value in place of analysis
Option B copies the client's target value in place of analysis. That abandons the research and analysis Standard 1 requires and conflicts with the impartiality required by the Ethics Rule.
Option C: Use only methods known on the initial license date
Option C limits the appraiser to methods known on the initial license date. Appraisers must keep up with recognized methods and techniques as they change, rather than freezing their knowledge at licensure.
Option D: Ignore individually small errors even if their combined effect harms the credibility of the appraisal results
Option D ignores individually small errors even when their combined effect harms credibility. SR 1-1 addresses a series of errors that, considered together, affects the credibility of results, so cumulative small errors matter.
Identify, Analyze, Avoid Errors
Standard 1 in three steps: identify the problem, do competent analysis, and avoid significant or cumulative errors.
How to use: Use this sequence to test whether an answer reflects Standard 1's development duties.
Exam Tip
Watch for answers that excuse small errors without considering their combined effect on credibility.
Common Mistakes to Avoid
- -Dismissing minor errors without considering their combined effect
- -Assuming methods learned for licensure stay sufficient indefinitely
- -Starting analysis before identifying the problem
Concept Deep Dive
Analysis
This question tests the general content of Standard 1 and SR 1-1. Standard 1 requires identifying the problem, determining the necessary scope of work, and completing competent research and analysis. SR 1-1 adds that the appraiser must correctly employ needed methods, avoid substantial errors that significantly affect an appraisal, and avoid a series of errors that together affect credibility.
Background Knowledge
Standard 1 governs real property appraisal development. SR 1-1 contains general development duties: be aware of and correctly employ recognized methods, avoid substantial errors of omission or commission that significantly affect an appraisal, and avoid careless or negligent performance, including a series of errors that together affect credibility.
Real-World Application
A reviewer finds several minor mistakes in a report: a wrong lot size, a misread sale date and a math slip. Each alone is small, but together they shift the adjusted sale prices enough to undermine the conclusion, which raises a concern under SR 1-1.
More USPAP Questions
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According to USPAP, what is the primary purpose of the Ethics Rule?
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