IACP Reporting Standards & Documentation Practices 3

Question 1

USPAP Standards Rule 2-1 requires that each written appraisal report contain sufficient information to:

Accepted Answer

Allow the intended users to understand the report properly

Answer

SR 2-1 requires that the report contain information sufficient for the intended users to understand it and not be misleading.

Question 2

In an appraisal report, the reconciliation section serves to:

Accepted Answer

Weigh the approaches to value and support the final opinion

Answer

Reconciliation is where the appraiser weighs the results of each approach applied and explains the reasoning supporting the final value conclusion.

Question 3

Which of the following is NOT typically required in the certification section of an appraisal report?

Accepted Answer

Names of all data sources consulted

Answer

While data sources should be documented in the report body, a list of all sources is not a required element of the USPAP certification itself.

Question 4

If an appraiser uses an automated valuation model (AVM) as a tool in the appraisal process, the AVM output must be:

Accepted Answer

Disclosed and analyzed, not blindly adopted

Answer

AVM results are tools that must be disclosed and critically analyzed rather than uncritically adopted as the value conclusion.

Question 5

A Restricted Appraisal Report may be distributed to parties other than the client only when:

Accepted Answer

The client authorizes expanded distribution in writing

Answer

Distribution of a Restricted Appraisal Report beyond the named client requires the client's written authorization.

(IACP) Independent Appraisers Certification Program Practice Test