Raymond Rath, ASA, CEIV™, CFA®, Managing Director at Globalview Advisors, spoke at the American Society of Appraisers’ International Appraisal Conference (IAC) on October 12, 2020. Mr. Rath’s presentation on “Appraisal Review: Process vs. Technical Knowledge,” helps appraisers from all valuation disciplines and users of appraisal review services better understand the process for performing a review of an appraisal prepared by another party.
Best practices for appraisal reviews are evolving. Appraisal reviews for real estate lending have received significant attention from the Federal Deposit Insurance Corporation and other government agencies for decades. With increased reliance on fair value estimates for financial reporting, the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) expressed concerns about the quality of fair value estimates and the depth of appraisal review procedures of auditors and their valuation specialists.
Many presentations on appraisal reviews focus on technical issues. Mr. Rath’s presentation focused on the extent on the different possible elements of the appraisal review process and review scoping issues. Our focus is on reviews that express a conclusion pertaining to the reasonableness of the appraiser’s fair market value/fair value estimate. While some of our comments focus on appraisal reviews for financial reporting, the scoping and other issues covered are relevant to reviews for other purposes.
The American Society of Appraisers is a multi-discipline, non-profit, international organization of professional appraisers representing all appraisal disciplines: Appraisal Review and Management, Business Valuation, Gems and Jewelry, Machinery and Technical Specialties, Personal Property and Real Property.