Which of the following is NOT a required element to be disclosed in the scope of work according to USPAP?
Correct Answer
C) The appraiser's fee for the assignment
The fee is not itself a required scope-description component. Explain the performed identification, inspection, research and analysis sufficiently for intended users. This does not assert that no other law, engagement or reporting duty can require fee information.
Why This Is the Correct Answer
Option C is correct because the appraiser's fee is not a scope-of-work component. Scope of work covers the extent of property identification, inspection, research and analyses needed to solve the assignment problem. Other laws or engagement terms might address fee information separately, but it is not part of the scope description.
Why the Other Options Are Wrong
Option A: The extent of research and analyses performed
Option A, the extent of research and analyses performed, is a core scope-of-work element. Since it is required, it is not the answer to this NOT question.
Option B: The type and extent of data researched
Option B, the type and extent of data researched, is expressly part of scope of work. It is required, so it is not the exception.
Option D: The extent of the property inspection
Option D, the extent of the property inspection, is part of scope of work, which includes the extent to which tangible property is inspected. It is required, so it is not the answer.
Fee Is Not Work
Scope of work describes the work done; the fee is what is paid for it, not part of the work.
How to use: Use this to pick out business terms in scope-of-work NOT questions.
Exam Tip
In NOT questions about scope, look for the item that describes payment or business terms rather than identification, inspection, research or analysis.
Common Mistakes to Avoid
- -Treating the fee as a scope-of-work element
- -Selecting a required element in a NOT question
- -Confusing engagement terms with the work performed
Concept Deep Dive
Analysis
This question asks which item is not a required element of the scope of work disclosure. Scope of work describes the extent of identification, inspection, data research and analysis. The appraiser's fee is a business term of the engagement, not part of the work performed to solve the appraisal problem.
Background Knowledge
The Scope of Work Rule requires disclosure sufficient for intended users to understand the work performed. Problem identification first requires identifying assignment elements such as client, intended use, type of value and effective date; scope of work then sets the identification, inspection, research and analysis needed.
Real-World Application
A client asks whether the appraiser's fee should appear in the scope of work section. The appraiser explains the section describes what was inspected, researched and analyzed, while the fee is handled in the engagement terms.
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