Legal Compliance & Documentation Flashcards
7 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Legal Compliance & Documentation flashcards as text
What is the purpose of a chain of custody document in field inspections involving collected samples?
Answer: To track the handling and transfer of samples to ensure integrity of evidence
A chain of custody document tracks every person who handles a sample, ensuring its integrity and admissibility if needed for legal or regulatory purposes.
Which document formally authorizes a field agent to access a private property for inspection?
Answer: A right-of-entry or access authorization agreement
A right-of-entry or access authorization agreement is required before entering private property, establishing legal permission for the agent's presence.
An agent discovers asbestos-containing materials during an inspection. The correct action is to:
Answer: Document the suspected material and recommend testing by a licensed asbestos inspector
Agents should document suspected asbestos-containing materials and defer testing and abatement recommendations to licensed asbestos professionals.
When is a field agent required to maintain confidentiality about inspection findings?
Answer: With unauthorized third parties not involved in the transaction
Agents must protect client confidentiality by not disclosing findings to unauthorized third parties, while still sharing with relevant transaction participants.
A field agent is asked to re-inspect a property after repairs are made. What should the follow-up report document?
Answer: Only the specific items addressed in the repair, and whether they now meet standards
A follow-up or re-inspection report should focus on the previously identified deficient items to confirm whether repairs were completed adequately.
What legal concept protects a field agent who acts in good faith within the scope of their license?
Answer: Scope of authority defense
A scope of authority defense recognizes that agents acting within their licensed scope and professional standards have reduced liability exposure for unintentional errors.
Which notation is most appropriate when a field agent cannot access an area during inspection?
Answer: Note 'not inspected' with the reason access was unavailable
Clearly noting 'not inspected' and the reason protects the agent from liability and informs the client of limitations in the report's coverage.