USPAP Scope of Work Rule Flashcards

If the scope of work is narrowed compared to a typical assignment, which of the following is required under USPAP?

Answer: Disclosure of the limited scope in the report

Any limitation in the scope of work must be disclosed in the appraisal report so that intended users understand the extent of analysis performed.

Under USPAP's Scope of Work Rule, 'extraordinary assumptions' are part of scope because they:

Answer: Affect the extent and nature of research and analysis required

Extraordinary assumptions can affect what research and analysis is necessary, since they assume certain conditions as true which might otherwise require investigation.

The Scope of Work Rule requires that the scope be adequate to produce results that are 'not misleading.' This means:

Answer: The scope must not deceive or misinform intended users about the nature of the assignment

Adequacy under the Scope of Work Rule means the research and analysis performed must not mislead intended users about the property's value or market conditions.

An appraiser is hired to appraise a unique historic property. How should the scope of work be determined?

Answer: Determine the scope based on what is needed to produce credible results for this specific assignment

The scope of work must be tailored to the specific assignment, meaning a unique property may require expanded research, specialized methods, or additional analysis.

Under USPAP, the appraiser's decision about scope of work must be made:

Answer: Based on what produces credible results for the intended use

The scope of work decision is always anchored to what is needed to produce credible assignment results given the intended use and intended users.

The USPAP Scope of Work Rule specifies that intended users are:

Answer: The client and any other parties the appraiser identifies as intended users at the time of the assignment

Intended users include the client and any others the appraiser identifies as intended users at the time of the assignment — not all readers of the report.