What must remain in the workfile when an appraiser relies on a subscription data service?
Correct Answer
D) Enough of the data relied upon to support the results
The workfile must contain the supporting data, information, and documentation needed to support the opinions and show compliance, or appropriate references to their locations. The appraiser must maintain required retention, access, and retrieval arrangements. Preserve necessary extracts when continuing access to a changing or expiring subscription would otherwise be inadequate. A paid invoice, license agreement, or general provider assurance alone does not document the evidentiary basis for the conclusions.
Why This Is the Correct Answer
Option D is correct because USPAP requires the workfile to contain all other data, information and documentation necessary to support the appraiser's opinions and conclusions and show compliance, or references to their locations. When relying on a subscription service, the appraiser needs enough of the relied-upon data to support the results. If the service's data may change or access may lapse, preserving extracts helps meet retention and retrieval duties.
Why the Other Options Are Wrong
Option A: The subscription invoice showing the service was paid
Option A is wrong because the subscription invoice showing the service was paid proves a purchase, not the data relied on. It does not support the opinions and conclusions.
Option B: The service's terms of use and licence agreement
Option B is wrong because the service's terms of use and licence agreement describe the contract with the provider. They do not document the evidence underlying the appraisal.
Option C: A letter from the provider confirming accuracy
Option C is wrong because a letter from the provider confirming accuracy is a general assurance, not the specific data relied upon. USPAP does not require such a letter.
Save the data, not the receipt
For subscription data, the workfile needs the records you relied on, not proof that you paid for access.
How to use: Use this when a workfile question offers invoices, contracts or assurance letters as choices.
Exam Tip
Choose the option that preserves the evidence supporting conclusions; administrative documents do not satisfy workfile support.
Common Mistakes to Avoid
- -Thinking proof of payment documents the data
- -Relying on a link to data that may change or expire
- -Assuming a provider's accuracy assurance replaces supporting data
Concept Deep Dive
Analysis
This question tests what the workfile must contain under the Record Keeping Rule. The workfile must include data, information and documentation necessary to support the opinions and show USPAP compliance, or references to where they are located. Proof of payment or license terms does not support conclusions.
Background Knowledge
USPAP defines the workfile as documentation necessary to support an appraiser's analyses, opinions and conclusions. Online data can change or disappear, so references alone may be inadequate if the data will not remain retrievable. Appraisers often save copies of the specific records relied on.
Real-World Application
An appraiser pulls sale records from a paid data service for a report. Because the service may later revise or remove those records, the appraiser saves the printouts in the workfile so they can be produced during the retention period.
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