USPAP Scope of Work Rule Flashcards

Under USPAP, who has the primary responsibility for determining the appropriate scope of work for an assignment?

Answer: The appraiser

The appraiser is responsible for determining the scope of work necessary to produce credible assignment results that meet the requirements of the intended use.

The USPAP Scope of Work Rule requires that the scope of work must produce assignment results that are:

Answer: Credible given the intended use and intended users

The scope of work must be sufficient to produce credible assignment results appropriate for the intended use and the needs of intended users.

Which of the following factors does NOT influence the determination of scope of work under USPAP?

Answer: The appraiser's preferred methodology

The appraiser's personal preference for a methodology is not a legitimate basis for scope of work determination; the scope must be driven by the assignment's needs.

Under the Scope of Work Rule, an appraiser may expand or limit the research typically performed when:

Answer: The resulting scope is sufficient to produce credible assignment results

Scope of work can be expanded or limited as long as the adjusted scope still produces results that are credible for the intended use.

The Scope of Work Rule in USPAP replaced the former concept of:

Answer: Departure Rule

The Scope of Work Rule replaced the old Departure Rule in USPAP, providing a more flexible and client-driven framework for defining the extent of research and analysis.

Which of the following must an appraiser disclose in their report under the Scope of Work Rule?

Answer: The scope of work actually performed

USPAP requires appraisers to disclose the scope of work performed in the report so intended users understand the extent of the analysis.