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Answer: avoided delegating the review of the electronic signatures to Lee.
According to CFA Institute Standard IV(C): Responsibilities of Supervisors, supervisors must make reasonable efforts to detect and prevent violations of applicable laws, rules, regulations, and the Code and Standards. While delegation is permitted, supervisors must ensure that subordinates are properly supervised. The review of electronic signatures is a critical compliance function that directly relates to the integrity of the firm's processes and records. As the chief compliance officer, Kang should have personally conducted or more closely supervised this review rather than delegating it entirely to Lee, as it involves a fundamental aspect of compliance oversight and requires her direct attention to ensure thorough implementation.
Author: LeetQuiz Editorial Team
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According to the Standards, Kang should have:
A
declined in writing to accept supervisory responsibility.
B
separated the updated section from the Code of Ethics.
C
avoided delegating the review of the electronic signatures to Lee.
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