Which of the following is NOT required to be disclosed in the Scope of Work according to USPAP?
Correct Answer
C) The appraiser's fee for the assignment
Scope-of-work disclosure explains what identification, inspection, research and analysis were actually performed so intended users understand the work supporting the result. The assignment fee is not one of those scope elements. Compensation can raise separate ethical issues, but disclosure does not make a prohibited contingent arrangement acceptable. Standards Rule 2-2 contains reporting requirements; it is not the name of the Scope of Work Rule.
Why This Is the Correct Answer
Option C is correct because the appraiser's fee is not a scope-of-work element. Scope-of-work disclosure must contain enough information for intended users to understand the work performed, such as identification, inspection and research. Compensation can raise separate ethical issues, but it is not part of describing the work done.
Why the Other Options Are Wrong
Option A: The type and extent of data researched
Option A, the type and extent of data researched, is a core scope-of-work element. Intended users need to know what data the appraiser researched to understand the work behind the result, so it is something that must be disclosed.
Option B: The extent to which tangible property is inspected
Option B, the extent to which tangible property is inspected, is part of the scope of work. Whether and how the property was inspected affects how users understand the results, so it must be disclosed.
Option D: The extent to which the property is identified
Option D, the extent to which the property is identified, is part of the scope of work. Property identification is one of the elements users need to understand the work performed, so it must be disclosed.
Identify, Inspect, Research, Analyze
Scope of work describes the work: how much you identified, inspected, researched and analyzed. Money paid for the work is not the work.
How to use: Use this when an exception question lists possible scope-of-work disclosures.
Exam Tip
On NOT questions, check each option against the elements of the work performed; the item about business terms such as the fee is the outlier.
Common Mistakes to Avoid
- -Thinking the fee must be stated as part of the scope of work
- -Leaving out the extent of inspection when it was limited
- -Confusing scope-of-work disclosure with the engagement terms
Concept Deep Dive
Analysis
This is a NOT question about scope-of-work disclosure. The report must allow intended users to understand the scope of work performed, which covers property identification, inspection, and data research and analysis. Find the item that is not part of the work itself.
Background Knowledge
The Scope of Work Rule requires the appraiser to identify the problem, determine and perform the scope of work needed for credible results, and disclose that scope in the report. Scope of work covers the extent of property identification, inspection, data research and analyses. Disclosure lets users understand what work supports the opinion.
Real-World Application
An appraiser performs an exterior-only inspection and relies on public records for the interior description. The report explains the extent of the inspection, the data sources used and the analyses performed. The fee appears only in the engagement letter, because it does not describe the work supporting the result.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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