In a scenario where the client identity is withheld, where should the client identity be documented?

• A. In the workfile
• B. In the appraisal report
• C. In the client engagement letter
• D. It should not be documented

Answer: (A)

Documenting the client’s identity in the workfile is essential when confidentiality is requested because the workfile is the internal, auditable record that supports the assignment. It can contain notes about who instructed the assignment and the fact that the client’s identity is withheld, along with the basis for that withholding. The appraisal report itself should present only information necessary for the intended users and must not disclose the client’s identity if confidentiality was requested. The client engagement letter is a separate contractual document and is not the place to store the confidential details that pertain to the appraisal conclusions.