Question

Appropriate procedural safeguards help reduce threats to objectivity and counter any perception of possible bias, which of the following is/are not procedural safeguards? 

(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)

Hint:

Always disclose conflicts of interest—transparency ensures fairness.

Answer 1

The Correct Option is B

Peer-review is not a mandatory safeguard but a quality practice. Fraudulent conduct and non-disclosure of conflicts are clearly violations.