Appraisal Report & Documentation Flashcards
7 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Appraisal Report & Documentation flashcards as text
What distinguishes a 'restricted use' appraisal report from an 'appraisal report' under USPAP?
Answer: Restricted use reports have limited intended users and contain less supporting detail
Under USPAP, a restricted use report is limited to a single intended user and contains fewer disclosures, while an appraisal report is suitable for broader distribution.
An appraiser documenting a pre-1899 antique revolver should note which key regulatory distinction in the report?
Answer: Antiques manufactured before 1899 are generally exempt from federal firearms transfer regulations
Under the Gun Control Act, firearms manufactured before 1899 are classified as antiques and are generally exempt from federal transfer regulations, a fact material to value and marketability.
Why is it important to photograph a firearm from multiple angles when preparing an appraisal report?
Answer: To provide visual evidence of condition, markings, and features that support the written description
Multi-angle photography creates a visual record that corroborates the written condition assessment and protects the appraiser if the report is later disputed.
When appraising a matched pair of antique pistols, how should the appraisal report treat their combined value compared to individual values?
Answer: Analyze whether the matched pair commands a premium over the sum of individual values
Matched pairs of antique pistols often command a significant ensemble premium, and a competent appraisal must analyze whether the set value exceeds the sum of individual values.
Which document in an appraisal file typically conveys the appraiser's qualifications and certifies that the appraiser has no undisclosed interest in the property?
Answer: Certification and limiting conditions statement
The certification statement attests to the appraiser's independence, discloses any relevant relationships, and confirms compliance with applicable standards.
A client wants a verbal appraisal opinion without a written report. Under USPAP, what is the appraiser's obligation?
Answer: The appraiser must still maintain a workfile supporting the verbal opinion
USPAP requires appraisers to maintain a workfile for any assignment, even when the only deliverable is a verbal opinion.
When documenting provenance in a firearms appraisal, which type of evidence is generally considered most reliable?
Answer: Original factory letters, shipping records, or period documentation
Contemporary factory letters, shipping records, and original period documents provide the most verifiable and credible evidence of a firearm's provenance.