A reviewer proposes merely editing the original appraisal and treating that edited document as the entire review report. Which requirement matters?
Correct Answer
D) The review report must be separate from the work under review
Standard 4 governs review-report content and information rather than a universal form or style. SR 4-1 requires the written or oral appraisal review report to be separate from the work reviewed and to be clear, accurate, nonmisleading and sufficiently informative, with appropriate assumptions and limitations disclosed. Editing the original alone does not supply the required distinct review communication.
Why This Is the Correct Answer
Option D is correct because Standards Rule 4-1 states that each written or oral appraisal review report must be separate from the work under review. The report must also be clear, accurate, not misleading and sufficiently informative. An edited copy of the original appraisal does not meet the separate-report requirement.
Why the Other Options Are Wrong
Option A: The review must be written on a standard government form
Option A, that the review must be written on a standard government form, is wrong because Standard 4 sets content requirements, not a mandatory form or style.
Option B: The edited appraisal replaces the reviewer’s own Standard 3 duties
Option B, that the edited appraisal replaces the reviewer's own Standard 3 duties, is wrong because the reviewer must still develop the review under Standard 3; editing someone else's work does not satisfy those development duties.
Option C: The review report may not identify the reviewer’s client by name
Option C, that the review report may not identify the reviewer's client by name, is wrong because there is no such ban; the review report identifies the client unless an anonymity request is handled as USPAP allows.
Review stands apart
A review is a report about the work, not a revised copy of the work, so it must be a separate document or communication.
How to use: Use this when a scenario has a reviewer marking up or rewriting the original appraisal as the review.
Exam Tip
Standard 3 covers review development and Standard 4 covers review reporting; options that merge the review into the original work are traps.
Common Mistakes to Avoid
- -Treating corrections to the original report as the review report
- -Believing Standard 4 requires a specific government form
- -Mixing up Standard 3 development duties with Standard 4 reporting duties
Concept Deep Dive
Analysis
This question tests a basic Standard 4 requirement for appraisal review reports. SR 4-1 requires each written or oral review report to be separate from the work under review. Editing the original appraisal and calling it the review does not produce a distinct review communication.
Background Knowledge
Appraisal review is the act of developing and communicating an opinion about the quality of another appraiser's work. Standard 3 covers development of the review and Standard 4 covers reporting it, and the review report must stand on its own apart from the work reviewed.
Real-World Application
A lender's review appraiser disagrees with two adjustments in a report. Instead of editing the original file, she prepares her own review report identifying the work under review, stating her opinions about its quality and giving her reasons.
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