Why should an appraiser disclose that a valuation model informed the analysis?

Correct Answer

D) The reader is entitled to know what the work rests on

Why this is correct: The governing concept is scope of work disclosure under USPAP. The appraiser must disclose significant assumptions and methods so intended users can understand the basis for the value conclusion. The original explanation states that disclosure allows users to judge the support for the conclusion. Why the other choices are wrong: "Model use requires the client's written pre-approval" is wrong; while client instructions are considered, specific pre-approval for model use is not a universal requirement. "Disclosure shifts responsibility to the model vendor" is wrong; the appraiser remains responsible for the analysis. "Models may only be used in restricted assignments" is wrong; models can be used in various assignments if appropriate. Exam tip: Disclosure is about transparency for the user's benefit, not about transferring liability.