Under Standard 4, a review report must clearly disclose:
Correct Answer
B) The scope of work performed in the review
Disclose the review scope sufficiently for intended users to understand the work reviewed, procedures performed, and material limitations under the applicable reporting requirements. A generic ordinary assignment fee is not universally required simply because the ETHICS Management section has certain procurement-payment disclosures. Identification of the work and other review elements must follow their actual requirements, including any appropriate unavailable-information treatment. A scope description does not imply a reviewer performed a new property appraisal.
Why This Is the Correct Answer
Option B is correct because Standard 4 requires the review report to state the scope of work used to develop the appraisal review. The comment explains that this includes disclosure of research and analyses performed and might also include those not performed. This lets intended users understand what the reviewer did and any material limits.
Why the Other Options Are Wrong
Option A: The reviewer's fee for the assignment
Option A, the reviewer's fee for the assignment, is not a general Standard 4 reporting requirement. Certain payment disclosures arise under the ETHICS RULE in specific circumstances, but an ordinary review fee is not a required element of the review report.
Option C: The original appraiser's license number
Option C, the original appraiser's license number, is not a required element of the review report. The reviewer must identify the work under review, but a license number is not on the list of Standard 4 requirements.
Option D: The date the original report was ordered
Option D, the date the original report was ordered, is not a Standard 4 requirement. The review report deals with the review's own elements, such as its effective date and scope, not the ordering date of the work reviewed.
Show what you did
A review report must show the work the reviewer actually did: the scope of work, including research and analyses performed.
How to use: Use this when choosing which disclosure a review report must contain.
Exam Tip
When a reporting question lists administrative details like fees, license numbers or order dates, compare them against the scope-of-work requirement.
Common Mistakes to Avoid
- -Assuming the reviewer's fee must be disclosed in the report
- -Omitting a description of the research and analyses performed
- -Thinking a scope description means the reviewer appraised the property
Concept Deep Dive
Analysis
This question tests what Standard 4 requires an appraisal review report to disclose. Among the choices, only the scope of work is a listed reporting requirement. You should recognize that stating scope includes disclosing the research and analyses performed.
Background Knowledge
Standard 4 sets the reporting requirements for appraisal reviews developed under Standard 3. The review report must state items such as the client and intended users, intended use, purpose, the work under review, effective dates, scope of work, and the reviewer's opinions and reasons. A scope description explains what the reviewer did, which does not mean the reviewer performed a new appraisal.
Real-World Application
A reviewer checks a desk-level appraisal for a lender without inspecting the property. Her review report states that she verified the comparable sales in MLS and did not inspect the subject, so the lender understands the limits of the review.
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