Scope of Work and Reporting Requirements Flashcards

Under USPAP's Scope of Work Rule, who is responsible for determining the appropriate scope of work for an assignment?

Answer: The appraiser

USPAP places responsibility for determining the appropriate scope of work on the appraiser, who must ensure it is sufficient to produce credible results.

The Scope of Work Rule requires that the scope selected must produce results that are:

Answer: Credible given the intended use and intended users

USPAP requires the scope of work to be sufficient to produce a credible appraisal given the intended use and the needs of the intended users.

Under STANDARD 2, which of the following report types requires the MOST content and disclosure?

Answer: Appraisal report

The appraisal report (formerly called summary appraisal report) requires more disclosure than the restricted appraisal report under current USPAP.

Which of the following must be stated in any USPAP-compliant real property appraisal report?

Answer: The identity of the client and intended users

STANDARD 2 requires the report to identify the client and the intended users to establish who may rely on the report.

Under the Scope of Work Rule, departing from a recognized valuation method or procedure is acceptable if:

Answer: The appraiser can demonstrate it still produces credible results

An appraiser may depart from recognized methods or procedures as long as the resulting appraisal is still credible for its intended use.

What does USPAP mean by the term 'intended use'?

Answer: The purpose for which the appraisal or appraisal review is used

Intended use refers to the purpose for which the client and intended users will use the appraiser's opinions and conclusions.