Scope of Work Rule Flashcards
The scope of work disclosed in an appraisal report must be the scope of work
actually performed by the appraiser.
One of two tests to determine that an appraiser has developed an acceptable scope of work in an appraisal assignment is when it
meets or exceeds an appraiser’s peers’ actions would be in performing the same or a similar assignment.
The amount and type of info researched, and the analyses applied in an appraisal or appraisal review assignment defines
scope of work
An appraiser’s initial planned scope of work was different from the scope of work that she disclosed in her appraisal report. Is this acceptable practice under USPAP?
Yes, determining the scope of work is an ongoing process in an assignment.
Which valuation services does the SCOPE OF WORK RULE apply to?
Only to appraisal and appraisal review services
What must an appraiser do prior to determining an acceptable scope of work in a real property appraisal assignment that will lead to credible assignment results?
Identify the problem.
An appraiser has excluded an approach to value that was not applicable in the assignment he was working on. What is true about the appraiser’s decision?
It is part of the scope of work determination.
A property owner wants an appraiser to provide a value opinion on a retail prop as if the renovation is already complete. What assignment condition should the appraiser consider as part of the scope of work?
a hypothetical condition
An appraiser is processing through the six assignment elements of problem identification as part of her scope of work determination in an appraisal assignment. Which of the following is NOT one of the elements?
the date the assignment is due
The “purpose” of the assignment is an element of the problem identification that was replaced w/ what phrase that is in current use today?
type and definition of value
A condition that is presumed to exist on the effective date for a specific assignment, but has a degree of uncertainty about it best describes
an extraordinary assignment
Assignment conditions as an element in the scope of work identification process might include
a hypothetical condition.
From a bottom line standpoint, when is the appraiser’s scope of work acceptable?
when it leads to credible assignment results for the intended use
What does it mean that an appraiser’s scope of work is an ongoing process that ends when the appraisal report is transmitted to the client?
The appraiser may need to modify or expand the scope of work during the assignment to ensure credible assignment results.
One of two tests to determine that an appraiser has developed an acceptable scope of work in an appraisal assignment is when it
meets or exceeds the expectations of parties who are regularly intended users for similar assignments.
A client has asked an appraiser to exclude an analysis that would be unfavorable to the client’s objectives for a tax appeal. If the analysis is a viable approach that other appraisers use, is the exclusion of the analysis acceptable?
No, the appraiser must not allow the client’s objectives to cause the assignment results to be biased.
An appraiser has been asked to limit her research and analysis in an appraisal to the degree that she believes will affect the credibility of the assignment results. The appraiser’s options include all of the following EXCEPT
perform the assignment as requested w/ a disclosure that the results may not be credible.
The req to disclose the scope of work in an appraisal reports applies to
appraisal and appraisal review assignments.
Why are appraisers required to report the scope of work in an appraisal and/or appraisal review report?
to provide the intended users w/ a clear understanding of the extent of the research and analyses performed
A reviewer cited an appraiser’s narrative appraisal report because it did not include the heading “Scope of Work.” The appraiser claims the reviewer erred on this point as the report did disclose the scope of work performed. Who is right?
The appraiser is right because there is no requirement for the scope of work description to be in a separate section of the appraisal report.
After reading an appraiser’s report, an administrative law judge, who was identified as an intended user of the report, was confused as to the extent of analysis performed in the appraisal. What error did the appraiser potentially commit in this instance?
The appraisal report must contain enough info to allow the intended users to understand the scope of work the appraiser performed.
Report disclosure of the appraiser’s scope of work must
be the scope of work actually performed.
