Chapter 5 Scope of Work Rule

Question 1

For each appraisal and appraisal review assignment, an appraiser must:

identify the problem to be solved;
determine and perform the scope of work necessary to develop credible assignment results; and
disclose the scope of work in the report.

Answer 1

Scope of Work Rule

Question 2

There are three sections of the SCOPE OF WORK RULE:

Answer 2

Problem Identification;
Scope of Work Acceptability; and
Disclosure Obligations.

Question 3

The type and extent of research and analyses in an appraisal or appraisal review assignment.

Answer 3

Scope of Work

Question 4

The credibility of assignment results is measured in the context of:
The attainment of the client’s stipulated result
The intended use
The amount of the value conclusion
Lending guidelines

Answer 4

The intended use

Question 5

Appraisers have broad \_\_\_\_\_\_\_\_\_ and significant \_\_\_\_\_\_\_\_\_ in determining the appropriate scope of work in an assignment.
Acceptance, liability
Flexibility, responsibility
Errors, omissions
Boundaries, limitations

Answer 5

Flexibility, responsibility

Question 6

In order to determine the appropriate scope of work, the appraiser must \_\_\_\_\_\_\_\_ the problem to be solved.
Value
Solve
Identify
Accept

Answer 6

Idenitify

Question 7

Identification of the intended use of an appraiser’s opinions and conclusions is:
Not necessary in most appraisal assignments
Necessary only when doing non-mortgage assignments
Not required unless the client wants the intended use to be disclosed
Necessary for determining the appropriate scope of work

Answer 7

Necessary for determining the appropriate scope of work

Question 8

Examples of assignment conditions include:
Extraordinary assumptions
All of these answers
Laws and regulations
Hypothetical conditions

Answer 8

All of these answers

Question 9

Intended use is:
One of the last determinations to be made before submitting the report
Not necessary to determine in an appraisal review assignment
Identified by the appraiser on the basis of communication with the client
Determined by the client on the basis of communication with the appraiser

Answer 9

Identified by the appraiser on the basis of communication with the client

Question 10

In an appraisal or appraisal review assignment, the scope of work is an ___________ process.
Ongoing
Unnecessary
Inflexible

Answer 10

Ongoing

Question 11

The responsibility for determining an appropriate scope of work rests with the:
Client
Intended users
Appraiser's peers
Appraiser

Answer 11

Appraiser

Question 12

An appraiser must not allow client objectives to cause the assignment results to be \_\_\_\_\_\_\_\_\_.
Basic
Biased
Credible
Reliable

Answer 12

Biased

Question 13

An appraiser's report must contain \_\_\_\_\_\_\_\_\_\_\_\_ to allow intended users to understand the scope of work performed.
A pre-printed statement
A section titled "scope of work"
No disclosure
Sufficient information

Answer 13

Sufficient Information

Question 14

The SCOPE OF WORK RULE provides appraisers with significant flexibility. Along with that flexibility comes:
Deniability
Release from liability
Responsibility
Creative license

Answer 14

Responsibility

Question 15

If a client’s objectives result in an appraiser developing biased assignment results:
The client has violated USPAP
This is permissible as long as the appraiser discloses the bias
The appraiser is solely responsible
The appraiser is not responsible; after all, he was just following orders

Answer 15

The appraiser is solely responsible

Question 16

An appraiser’s peers are defined as other appraisers who:
Hold the same level of state licensure
Have expertise and competency in a similar type of assignment
Practice in the same market
Have a similar level of education

Answer 16

Have expertise and competency in a similar type of assignment

Question 17

In reporting the scope of work in an appraisal or appraisal review report:
The report must contain sufficient information so that intended users understand the scope of work
The scope of work must be described in narrative style
All written reports must contain a specific section titled “Scope of Work”
Use of pre-printed forms is prohibited

Answer 17

The report must contain sufficient information so that intended users understand the scope of work

Question 18

An appraiser is engaged to appraise a single-unit dwelling. Upon inspection of the property, the appraiser realizes it is a three-unit dwelling. The appraiser’s best course of action is:
Withdraw from the assignment
Continue with the same scope of work that was initially planned
Use a hypothetical condition to appraise the property as a single-unit
Reconsider the scope of work before proceeding

Answer 18

Reconsider the scope of work before proceeding