Which statement is TRUE regarding the role of USPAP in appraisal development and reporting?

• A. USPAP Standard 1 governs development, while Standard 2 governs reporting.
• B. USPAP Standard 2 governs development, while Standard 1 governs reporting.
• C. USPAP Standard 3 governs development, while Standard 4 governs reporting.
• D. USPAP does not assign specific roles to development or reporting.

Answer: (A)

USPAP organizes appraisal work into two main phases: what you do to develop the assignment and how you report the results. The development phase is Standard 1, which covers the data collection and analysis, determination of the scope of work, and the methods used to develop the appraisal. The reporting phase is Standard 2, which governs how you communicate the conclusions, the content of the report, and the required disclosures. Because these roles are defined separately, saying that development is Standard 2 or that reporting is Standard 1 would misstate USPAP’s structure. The statement that Standard 1 governs development and Standard 2 governs reporting is the accurate one.