Where must the scope of work actually performed be communicated?
Correct Answer
B) In the report, with enough detail for intended users to understand it
Why this is correct: USPAP's reporting standards require the scope of work to be disclosed in the report with sufficient detail to enable intended users to understand what was and was not done, as stated in the original explanation. Why the other choices are wrong: "Nowhere in particular, provided the client already knows what was done" is incorrect because intended users beyond the client need to understand the scope. "Only in the private workfile" is wrong; the workfile is not the report. "In a side letter available on request" is false; the scope must be in the report itself. Exam tip: Scope disclosure in the report is mandatory for transparency to intended users.
Why This Is the Correct Answer
Why this is correct: USPAP's reporting standards require the scope of work to be disclosed in the report with sufficient detail to enable intended users to understand what was and was not done, as stated in the original explanation. Why the other choices are wrong: "Nowhere in particular, provided the client already knows what was done" is incorrect because intended users beyond the client need to understand the scope. "Only in the private workfile" is wrong; the workfile is not the report. "In a side letter available on request" is false; the scope must be in the report itself. Exam tip: Scope disclosure in the report is mandatory for transparency to intended users.
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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