When must the workfile for an appraisal assignment be established?

The workfile for an appraisal assignment must be established prior to the issuance of any report because this ensures that all necessary data, analyses, and conclusions are properly documented and organized. Establishing the workfile at this stage allows the appraiser to reference all pertinent information that supports their findings and opinions in the final report. This practice is crucial for maintaining transparency and accuracy in the appraisal process and aligns with the standards set by regulatory authorities.

Creating the workfile beforehand also facilitates compliance with professional guidelines, as it encourages thorough documentation of the methods and reasoning behind the appraiser's decisions. This can be especially important in the event of an audit or if the appraisal is challenged in the future. The information recorded in the workfile serves as a comprehensive record that can substantiate the appraiser's work.

In this context, initiating the work file after completing the appraisal or at the conclusion of the assignment would not adhere to best practices, as it could lead to incomplete documentation and potential issues with meeting professional standards for appraisal practice.