Question

Identify the applicable element of quality control:

g. no employee will have any direct or indirect financial interest, association, or relationship (for example, a close relative serving a client in a decision-making capacity) not otherwise disclosed that might be adverse to the firm's best interest

Answer 1

The applicable element of quality control in this scenario is Independence, which ensures that no employee has any financial interest, association, or relationship that could be adverse to the firm's best interest.

Step-by-step explanation:

The applicable element of quality control in this scenario is Independence. Independence refers to the requirement that employees involved in quality control must be impartial and free from any conflicts of interest that could compromise their judgment or objectivity. In this case, the element of independence ensures that no employee has any financial interest, association, or relationship that could be adverse to the firm's best interest.