Which statement best describes the relationship between intended use and scope of work?

• A. Scope of work determines intended use
• B. They are unrelated
• C. Intended use is determined after scope of work
• D. Intended use determines scope of work

Answer: (D)

Intended use drives what work needs to be done. The purpose for which the appraisal or report is prepared sets the requirements the appraiser must meet, so the scope of work is tailored to that use. That means the data gathered, the approaches to value used, the level of analysis, and the reporting format all come from what the user needs the appraisal to accomplish. If the intended use is to support a loan decision, the scope will include enough data and multiple valuation approaches to be credible for lending purposes; if the use is for internal planning with lower risk, the scope can be narrower. If the intended use changes, the scope would typically need to be adjusted or a new assignment performed.