According to supervisory guidance for model risk management (such as SR 11-7 / OCC 2011-12), an essential element of rigorous model validation is independence. Those who perform the validation must be independent from model developers and model users to ensure an unbiased, critical assessment. Therefore, model developers should not be involved in the model validation team.

Choice A is an actual supervisory expectation because regulators require that models be subject to a "use test"—meaning they are genuinely used in the bank's decision-making process, rather than being built solely for regulatory compliance.

Choice B is an actual supervisory expectation because comprehensive documentation must explicitly state the model's limitations, underlying assumptions, and the conditions under which it might break down or not work effectively.

Choice D is incorrect because Choice C is a clear exception.