Solution

• 2- A. Incorrect because it is a recommended procedure. Among the recommended procedures for Standard I (B) is to create a restricted list and put companies on that list if the firm is unwilling to permit dissemination of adverse opinions about that company. B. Correct because according to Standard I (B), Independence and Objectivity, a recommended procedure for compliance is to limit gifts, not prohibit gifts. C. Incorrect because according to the recommended procedures for Standard | (B), firms should appoint a senior officer with oversight responsibilities for compliance with the firm's code of ethics and all regulations concerning its business.