An appraiser has the professional responsibility to identify the capacity in which they are performing an assignment.

• A. True
• B. False
• C. Sometimes
• D. Cannot determine

Answer: (A)

Identifying the capacity you are acting in is essential because USPAP requires you to disclose the role and relationship in the engagement. This clarifies who commissioned the work, who the report is for, and how independence and objectivity apply, which in turn guides the scope of work and the form of the report. Without this identification, users could misinterpret your obligations or the nature of the engagement, potentially compromising credibility and compliance. So the statement is true: you must identify the capacity in every assignment, whether you’re acting as the appraiser, as an advisor/consultant, or in another role that affects how the work is performed and reported.