CFA Appraisal Report & Documentation 3

Question 1

What distinguishes a 'restricted use' appraisal report from an 'appraisal report' under USPAP?

Accepted Answer

Restricted use reports have limited intended users and contain less supporting detail

Answer

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.

Question 2

An appraiser documenting a pre-1899 antique revolver should note which key regulatory distinction in the report?

Accepted Answer

Antiques manufactured before 1899 are generally exempt from federal firearms transfer regulations

Answer

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.

Question 3

Why is it important to photograph a firearm from multiple angles when preparing an appraisal report?

Accepted Answer

To provide visual evidence of condition, markings, and features that support the written description

Answer

Multi-angle photography creates a visual record that corroborates the written condition assessment and protects the appraiser if the report is later disputed.

Question 4

When appraising a matched pair of antique pistols, how should the appraisal report treat their combined value compared to individual values?

Accepted Answer

Analyze whether the matched pair commands a premium over the sum of individual values

Answer

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.

Question 5

Which document in an appraisal file typically conveys the appraiser's qualifications and certifies that the appraiser has no undisclosed interest in the property?

Accepted Answer

Certification and limiting conditions statement

Answer

The certification statement attests to the appraiser's independence, discloses any relevant relationships, and confirms compliance with applicable standards.

CFA Practice Test

CFA Practice Test

CFA Appraisal Report & Documentation 3