Under the Scope of Work Rule, an appraiser must perform the scope of work necessary to develop:
Correct Answer
A) Credible results supported by a scope meeting both relevant-user expectations and peer-action benchmarks
Scope must support credible results for the intended use and meet or exceed both the expectations of parties who are regularly intended users for similar assignments and what appraiser peers’ actions would be in the same or a similar assignment. A random peer’s unrelated work is not the benchmark, but the relevant peer test is part of USPAP. Neither budget alone nor maximal work defines acceptability.
Why This Is the Correct Answer
Option A is correct because USPAP states that the scope of work must include the research and analyses necessary to develop credible assignment results. It is acceptable when it meets or exceeds the expectations of parties who are regularly intended users for similar assignments and what an appraiser's peers' actions would be in the same or a similar assignment. Option A captures both credibility and the two benchmarks.
Why the Other Options Are Wrong
Option B: Whichever scope any unrelated appraiser happened to use
Option B uses whichever scope any unrelated appraiser happened to use. The peer test refers to appraisers' peers in the same or a similar assignment, not an unrelated appraiser's work.
Option C: The least expensive scope of work available, whether or not the conclusions are supported by evidence
Option C uses the least expensive scope whether or not the conclusions are supported by evidence. Cost does not define acceptability, and unsupported conclusions are not credible results.
Option D: The most extensive work physically possible in the assignment
Option D requires the most extensive work physically possible. USPAP requires the work necessary for credible results, not the maximum possible work.
Credible, users, peers
An acceptable scope produces credible results and meets what regular intended users expect and what peers would do on a similar job.
How to use: Use these three checks to judge any scope of work option.
Exam Tip
Choose the option that ties scope to credible results and the relevant user and peer benchmarks, not to cost or maximum effort.
Common Mistakes to Avoid
- -Thinking the maximum possible work is required for acceptability
- -Picking the cheapest scope regardless of support
- -Comparing against an unrelated appraiser rather than relevant peers
Concept Deep Dive
Analysis
This question tests the Scope of Work Rule's acceptability standard. The scope must include the research and analyses necessary for credible results and meet or exceed both the expectations of parties who are regularly intended users for similar assignments and what an appraiser's peers' actions would be in the same or a similar assignment. Eliminate options based on unrelated appraisers, cost alone, or maximum effort.
Background Knowledge
The Scope of Work Rule gives the appraiser flexibility while setting a floor: the work must be enough for credible results for the intended use. Acceptability is measured against the expectations of regular intended users of similar assignments and the actions of the appraiser's peers in the same or a similar assignment.
Real-World Application
For a routine single-family purchase appraisal, the appraiser plans an interior inspection, comparable sales research, and market analysis. That scope matches what lenders regularly expect and what peer appraisers would do on a similar assignment.
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