USPAP USPAP Scope of Work Rule 1 — Questions and Answers
Question 1: Under USPAP, who has the primary responsibility for determining the appropriate scope of work for an assignment?
- The client
- The intended user
- The appraiser (Correct answer)
- The state licensing board
Correct 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.
Question 2: The USPAP Scope of Work Rule requires that the scope of work must produce assignment results that are:
- Consistent with prior appraisals on the same property
- Credible given the intended use and intended users (Correct answer)
- Acceptable to any federal agency
- Based on at least three comparable sales
Correct 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.
Question 3: Which of the following factors does NOT influence the determination of scope of work under USPAP?
- The intended use of the appraisal
- The type and definition of value sought
- The appraiser's preferred methodology (Correct answer)
- The characteristics of the subject property
Correct 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.
Question 4: Under the Scope of Work Rule, an appraiser may expand or limit the research typically performed when:
- The client requests any change
- The resulting scope is sufficient to produce credible assignment results (Correct answer)
- The assignment involves a residential property
- The fee will increase
Correct 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.
Question 5: The Scope of Work Rule in USPAP replaced the former concept of:
- Departure Rule (Correct answer)
- Ethics Rule
- Jurisdictional Exception Rule
- Supplemental Standards Rule
Correct 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.
Question 6: Which of the following must an appraiser disclose in their report under the Scope of Work Rule?
- Their personal opinion of the client's intentions
- The scope of work actually performed (Correct answer)
- The fee charged for the assignment
- The names of all comparable sale owners
Correct 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.
USPAP USPAP Scope of Work Rule 1
Under USPAP, who has the primary responsibility for determining the appropriate scope of work for an assignment?