What benchmark does USPAP give for judging whether a chosen scope of work is acceptable?
Correct Answer
C) Peers' actions in similar assignments and the expectations of intended users
Why this is correct: USPAP's Scope of Work Rule states the minimum acceptable scope is determined by what is necessary for credible results, based on the expectations of intended users and what peers' actions would be in similar assignments, as per the original explanation. Why the other choices are wrong: "The scope the client is willing to pay for" is incorrect; client budget cannot override the need for credible results. "Whatever scope the appraiser's report-writing software defaults recommend" is wrong; software defaults do not determine USPAP compliance. "The most exhaustive scope physically possible" is false; USPAP requires a credible scope, not necessarily the most exhaustive. Exam tip: The scope of work must meet a two-part test: peers' actions and users' expectations.
Why This Is the Correct Answer
Why this is correct: USPAP's Scope of Work Rule states the minimum acceptable scope is determined by what is necessary for credible results, based on the expectations of intended users and what peers' actions would be in similar assignments, as per the original explanation. Why the other choices are wrong: "The scope the client is willing to pay for" is incorrect; client budget cannot override the need for credible results. "Whatever scope the appraiser's report-writing software defaults recommend" is wrong; software defaults do not determine USPAP compliance. "The most exhaustive scope physically possible" is false; USPAP requires a credible scope, not necessarily the most exhaustive. Exam tip: The scope of work must meet a two-part test: peers' actions and users' expectations.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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