CFA Legal Compliance & Documentation 3

Question 1

What is the purpose of a chain of custody document in field inspections involving collected samples?

Accepted Answer

To track the handling and transfer of samples to ensure integrity of evidence

Answer

A chain of custody document tracks every person who handles a sample, ensuring its integrity and admissibility if needed for legal or regulatory purposes.

Question 2

Which document formally authorizes a field agent to access a private property for inspection?

Accepted Answer

A right-of-entry or access authorization agreement

Answer

A right-of-entry or access authorization agreement is required before entering private property, establishing legal permission for the agent's presence.

Question 3

An agent discovers asbestos-containing materials during an inspection. The correct action is to:

Accepted Answer

Document the suspected material and recommend testing by a licensed asbestos inspector

Answer

Agents should document suspected asbestos-containing materials and defer testing and abatement recommendations to licensed asbestos professionals.

Question 4

When is a field agent required to maintain confidentiality about inspection findings?

Accepted Answer

With unauthorized third parties not involved in the transaction

Answer

Agents must protect client confidentiality by not disclosing findings to unauthorized third parties, while still sharing with relevant transaction participants.

Question 5

A field agent is asked to re-inspect a property after repairs are made. What should the follow-up report document?

Accepted Answer

Only the specific items addressed in the repair, and whether they now meet standards

Answer

A follow-up or re-inspection report should focus on the previously identified deficient items to confirm whether repairs were completed adequately.

CFA Practice Test

CFA Practice Test

CFA Legal Compliance & Documentation 3