What is the implications of not having a workfile for a Restricted Use Appraisal Report?

The absence of a workfile for a Restricted Use Appraisal Report can significantly affect the credibility of the appraisal. According to USPAP (Uniform Standards of Professional Appraisal Practice), maintaining a workfile is essential for supporting the appraiser's opinions and conclusions. A workfile serves as a repository of data, reasoning, and evidence used in the appraisal process.

When a workfile is missing, it raises questions about the reliability and thoroughness of the appraisal. Stakeholders might doubt the appraiser's adherence to professional standards, and it can be challenging to substantiate claims made in the report. This uncertainty can diminish the appraisal's perceived trustworthiness, especially if it must be scrutinized by auditors or other professionals.

While there may be consequences such as penalties or violations related to not having a workfile, the primary concern in this context revolves around the issue of credibility and how it impacts the appraisal's acceptance and usefulness. Therefore, the implications of lacking a workfile can ultimately detract from the quality and integrity of the appraisal, making it difficult to justify the conclusions reached.