Why can a limiting condition not be used to disclaim required analysis?

Correct Answer

D) Credible results still have to be produced

Why this is correct: A limiting condition defines the boundaries of the appraisal assignment, but it cannot excuse the appraiser from performing the analysis required to produce a credible result. The scope of work must be sufficient to meet that fundamental requirement. Why the other choices are wrong: Limiting conditions must be approved by the client is not a USPAP rule; disclosure is required, but client approval does not override the need for credible results. USPAP prohibits limiting conditions altogether is false; they are a standard part of an appraisal report. Only extraordinary assumptions may limit the work is incorrect; both extraordinary assumptions and limiting conditions can define scope, but neither can excuse a lack of credible analysis. Exam tip: A limiting condition documents the scope; it does not cure an insufficient scope that fails to produce a credible result.