What must a workfile contain, at minimum?
Correct Answer
D) The client's identity, true copies of the reports, and data supporting the conclusions
Why this is correct: The minimum workfile contents per USPAP are: the identity of the client, true copies of any written reports, and all data, information, and documentation necessary to support the appraiser's conclusions or references to its location. This allows another appraiser to understand the work. Why the other choices are wrong: 'Only the signed report and the invoice' is insufficient; supporting data is required. 'The client's loan application and credit file' are not part of the appraisal workfile. 'Complete working drafts of every intermediate version of the report as the analysis evolved' is not required; only the final report copies are needed. Exam tip: A workfile must support the conclusions. Think: Could a peer reviewer reconstruct your work from it?
Why This Is the Correct Answer
Why this is correct: The minimum workfile contents per USPAP are: the identity of the client, true copies of any written reports, and all data, information, and documentation necessary to support the appraiser's conclusions or references to its location. This allows another appraiser to understand the work. Why the other choices are wrong: 'Only the signed report and the invoice' is insufficient; supporting data is required. 'The client's loan application and credit file' are not part of the appraisal workfile. 'Complete working drafts of every intermediate version of the report as the analysis evolved' is not required; only the final report copies are needed. Exam tip: A workfile must support the conclusions. Think: Could a peer reviewer reconstruct your work from it?
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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