According to USPAP, when is it permissible to create a workfile?

The timing for when a workfile may be created is crucial in understanding compliance with USPAP standards. According to USPAP, a workfile must be created and maintained in conjunction with the development of an appraisal or appraisal review.

Creating the workfile after transmitting the report allows appraisers to compile all necessary documentation and analysis that supports their findings and conclusions. This aligns with USPAP's requirement that the workfile should be complete and accessible for future reference or review, ensuring that it reflects the thought process and data that informed the appraisal.

In essence, the workfile serves as a comprehensive record of the appraiser's work and should be developed throughout the appraisal process, not retroactively. Thus, forming the workfile after the report has been transmitted ensures that all relevant information is included in the documentation, adhering to USPAP's standards for due diligence and transparency in appraisal practice.