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12

USPAP 2018-2019 Edition

© The Appraisal Foundation

SCOPE OF WORK RULE

14

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

1. identify the problem to be solved;

2. determine and perform the scope of work necessary to develop credible assignment

results; and

3. disclose the scope of work in the report.

An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of

work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible

assignment results.

Comment: Scope of work includes, but is not limited to:

• the extent to which the property is identified;

• the extent to which tangible property is inspected;

• the type and extent of data researched; and

• the type and extent of analyses applied to arrive at opinions or conclusions.

Appraisers have broad flexibility and significant responsibility in determining the appropriate scope of work

for an appraisal or appraisal review assignment.

Credible assignment results require support by relevant evidence and logic. The credibility of assignment

results is always measured in the context of the intended use.

PROBLEM IDENTIFICATION

An appraiser must gather and analyze information about those assignment elements that are necessary to

properly identify the appraisal or appraisal review problem to be solved.

Comment: The assignment elements necessary for problem identification are addressed in the applicable

Standards Rules (i.e., SR 1-2, SR 3-2, SR 5-2, SR 7-2, and SR 9-2). In an appraisal assignment, for example,

identification of the problem to be solved requires the appraiser to identify the following assignment

elements:

• client and any other intended users;

• intended use of the appraiser’s opinions and conclusions;

• type and definition of value;

• effective date of the appraiser’s opinions and conclusions;

• subject of the assignment and its relevant characteristics; and

• assignment conditions.

This information provides the appraiser with the basis for determining the type and extent of research

and analyses to include in the development of an appraisal. Similar information is necessary for problem

identification in appraisal review assignments.

Communication with the client is required to establish most of the information necessary for problem

identification. However, the identification of relevant characteristics is a judgment made by the appraiser that

requires competency in that type of assignment.

14 See Advisory Opinion 28,

Scope of Work Decision, Performance, and Disclosure

and Advisory Opinion 29,

An Acceptable Scope of Work

.

See also

FAQ 151-

214

FAQ

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