What must a report disclose about the extent to which the appraiser relied on another professional's work?
Correct Answer
D) What was relied upon and the extent of reliance
Why this is correct: USPAP's reporting standards require disclosure of the extent to which the appraiser relied on the work of others (e.g., an engineer). The report must state what specific work was relied upon and the degree of that reliance so readers can assess the support for the appraisal conclusions. Why the other choices are wrong: The choice stating nothing, provided the professional was licensed, is incorrect; reliance must be disclosed regardless of licensure. The choice to disclose only the total cost is wrong; cost does not inform the reader about the nature of reliance. The choice to disclose only the name and license number is false; this does not convey what was relied upon or to what extent. Exam tip: Disclose both the 'what' and the 'how much' when relying on another expert's work.
Why This Is the Correct Answer
Why this is correct: USPAP's reporting standards require disclosure of the extent to which the appraiser relied on the work of others (e.g., an engineer). The report must state what specific work was relied upon and the degree of that reliance so readers can assess the support for the appraisal conclusions. Why the other choices are wrong: The choice stating nothing, provided the professional was licensed, is incorrect; reliance must be disclosed regardless of licensure. The choice to disclose only the total cost is wrong; cost does not inform the reader about the nature of reliance. The choice to disclose only the name and license number is false; this does not convey what was relied upon or to what extent. Exam tip: Disclose both the 'what' and the 'how much' when relying on another expert's work.
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