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Answer: Designate a supervisory analyst to verify that research reports are grounded in a reasonable and adequate basis before external distribution.
**Explanation:** - **Option A** is incorrect because Standard V(A) recommends adopting a standardized set of criteria for evaluating external advisors, not customizing criteria for each advisor. - **Option B** is incorrect because the Standard advises establishing **minimum** levels of scenario testing for models, not **maximum** levels. - **Option C** is correct because the Standard requires firms to appoint a supervisory analyst or committee to ensure research reports meet reasonable and adequate criteria before external circulation. This aligns with the ethical and professional standards to prevent violations of the Code of Ethics and Standards of Professional Conduct.
Author: LeetQuiz Editorial Team
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According to the recommended procedures for compliance with the Standard relating to diligence and reasonable basis, members should encourage their firms to:
A
Assess the suitability of external advisors by tailoring the evaluation criteria for each advisor.
B
Set upper limits for scenario testing of all computer-based models utilized in assessing financial instruments.
C
Designate a supervisory analyst to verify that research reports are grounded in a reasonable and adequate basis before external distribution.