USPAP USPAP Scope of Work Rule 2 — Questions and Answers
Question 1: Under USPAP, 'scope of work' is defined as the type and extent of:
- The property inspection only
- Research and analyses applied in an assignment (Correct answer)
- The report format and length
- The number of comparable sales analyzed
Correct answer: Research and analyses applied in an assignment
USPAP defines scope of work as the type and extent of research and analyses performed in an appraisal or appraisal review assignment.
Question 2: An appraiser performs a desktop appraisal without an interior inspection. This is permissible under USPAP if:
- The property is residential
- The scope of work is adequate for the intended use and this is disclosed (Correct answer)
- The assignment is for litigation
- The client is a government entity
Correct answer: The scope of work is adequate for the intended use and this is disclosed
A desktop appraisal (no inspection) is acceptable if the reduced scope still produces credible results for the intended use and the limitation is disclosed in the report.
Question 3: The benchmark for evaluating whether a scope of work is appropriate under USPAP is:
- Whether it meets FNMA guidelines
- The actions of appraisers' peers performing similar assignments (Correct answer)
- Whether the client approved it in writing
- Whether it matches the scope in a prior appraisal
Correct answer: The actions of appraisers' peers performing similar assignments
USPAP evaluates the appropriateness of scope of work against what similar assignments would typically require — the 'similar assignment' standard used by peers.
Question 4: Under USPAP, the scope of work for an assignment is established:
- After the report is signed and delivered
- At the completion of the inspection
- At the time of assignment acceptance, considering all assignment conditions (Correct answer)
- Only by the client before the assignment begins
Correct answer: At the time of assignment acceptance, considering all assignment conditions
The scope of work is established at the time of assignment acceptance, taking into account all known assignment conditions and requirements.
Question 5: Which of the following is a key component appraisers must consider when establishing scope of work?
- The anticipated selling price of the property
- The intended use of the appraisal (Correct answer)
- The appraiser's experience level in the market
- The property owner's preferred value
Correct answer: The intended use of the appraisal
The intended use of the appraisal is a critical factor because it determines what level of research and analysis is needed to produce credible results.
Question 6: Under USPAP, an appraiser who performs a more extensive scope of work than typical for similar assignments:
- Has violated the Scope of Work Rule
- Is not in compliance with USPAP
- Is acceptable as long as the results are credible (Correct answer)
- Must disclose this to the client only
Correct answer: Is acceptable as long as the results are credible
Performing a broader scope than typical is not a USPAP violation; the rule sets a minimum threshold of credibility, not a maximum.
USPAP USPAP Scope of Work Rule 2
Under USPAP, 'scope of work' is defined as the type and extent of: