When drafting an engagement letter for a review, which section should receive the most attention to ensure USPAP compliance?

The section that should receive the most attention when drafting an engagement letter for a review to ensure USPAP compliance is the scope of work. The scope of work defines the extent and nature of the appraisal or review process, outlining what the appraiser intends to do and detailing the procedures that will be followed.

Ensuring that the scope of work is well-defined is critical for several reasons. First, it establishes the parameters of the appraisal review, clarifying what will be examined, the methodology to be used, and the extent of analysis. This clarity not only informs the client of what to expect but also aligns with USPAP's requirement for appraisers to understand and disclose their scope of work in order to uphold professional standards and integrity.

A comprehensive scope of work helps in identifying the key issues relevant to the appraisal, thereby assuring that the review is thorough and credible. Since USPAP emphasizes the importance of transparency and detailed methodologies, neglecting to clearly define the scope can lead to compliance issues and potentially weaken the defensibility of the appraiser’s conclusions.

The other sections, while important, do not carry the same level of operational significance in relation to USPAP compliance. For instance, fees relate to the business aspect of the engagement, and while they are