Question

Appropriate procedural safeguards help reduce threats to objectivity and counter any perception of possible bias. Which of the following is/are not procedural safeguard/s?
(1) Act in a fraudulent manner
(2) Providing peer review of valuation, if necessary
(3) Non-Disclosure of any prior association with the client
(4) Non-Disclosure of any possible source of conflict of interest

• A. (3) and (4)
• B. Only (2)
• C. Only (4)
• D. (2) and (4)

Answer 1

The Correct Option is A

Disclosure of prior association with the client and disclosure of any possible source of conflict of interest are crucial procedural safeguards to maintain objectivity and transparency. Acting in a fraudulent manner is clearly not a safeguard; it is the opposite. Providing peer-review of valuation can be a valuable safeguard to ensure the accuracy and objectivity of assessments. Therefore, options (3) and (4) are not procedural safeguards, making (A) the correct answer.