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 reconciliation Questions
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
Reconciliation of the approaches to value is best described as which activity?
Significant appraisal assistance from a person who does not sign the report must be treated how?
In appraising a hotel as a going concern, what must be allocated?
What does it mean to say an approach is not applicable to an assignment?
Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
USPAP (Ethics & Standards)
15% 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?