What is the relationship between the report and the workfile?
Correct Answer
D) The workfile holds the support behind the report
Why this is correct: The workfile is the repository for all data, analyses, and documentation that support the opinions and conclusions communicated in the appraisal report. It provides the evidence trail for the report's content. Why the other choices are wrong: The choice that the workfile is a copy of the delivered report is incorrect; the workfile contains supporting detail, not just the report. The choice that the workfile replaces content omitted from a report is wrong; the workfile supports the report, but a report must still contain sufficient information to be understood. The choice that the workfile must be delivered with every report is false; it is typically retained by the appraiser. Exam tip: Report = communication; Workfile = documentation and support.
Why This Is the Correct Answer
Why this is correct: The workfile is the repository for all data, analyses, and documentation that support the opinions and conclusions communicated in the appraisal report. It provides the evidence trail for the report's content. Why the other choices are wrong: The choice that the workfile is a copy of the delivered report is incorrect; the workfile contains supporting detail, not just the report. The choice that the workfile replaces content omitted from a report is wrong; the workfile supports the report, but a report must still contain sufficient information to be understood. The choice that the workfile must be delivered with every report is false; it is typically retained by the appraiser. Exam tip: Report = communication; Workfile = documentation and support.
More USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
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
Previous Question
Three approaches indicate $492,000 (sales comparison), $538,000 (cost) and $455,000 (income) for an owner-occupied suburban home. Reconciliation should:
Next Question
The cost approach indicates $520,000 while sales comparison indicates $430,000 on a 40-year-old house. What is the most likely explanation?