QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

4. Kim Li, CFA, is a portfolio manager for an investment advisory firm. Li

delegates some of her supervisory duties to Janet Marshall, CFA, after educating

Marshall on methods to prevent and detect violations of the firm’s compliance

procedures. Despite these efforts, Li discovers that an employee reporting to

Marshall may have violated the procedures. According to the Standards of

Practice Handbook, Li’s least likely initial course of action must be to:

A. suspend the employee.

B. increase supervision of Marshall.

C. initiate an investigation to determine the extent of the wrongdoing.