Under CFP Board practice standards, which statement about the 600 Series and the scope of the engagement is true?

Under CFP Board practice standards, which statement about the 600 Series and the scope of the engagement is true?

• A. I
• B. II
• C. I and II
• D. Neither I or II

Answer: (A)

The key idea is that the 600 Series defines how the scope of an engagement is set and documented. It emphasizes clear boundaries: specify in writing exactly which services will be provided, what will not be done, and how the work will be carried out. This clarity protects both you and the client from misunderstandings and helps ensure ethical practice by preventing work beyond the agreed scope without proper authorization. Therefore, the true statement is the one that reflects this boundary-setting role of the 600 Series—that the scope of the engagement is defined and limited, and any tasks outside that scope should be addressed separately or through a written amendment. A choice that suggests the 600 Series either doesn’t govern scope or allows for outside work without proper amendment would not fit CFP Board standards. For practical application, always document the scope in an engagement letter and handle any requests beyond that scope with a new engagement or a written addendum.

The key idea is that the 600 Series defines how the scope of an engagement is set and documented. It emphasizes clear boundaries: specify in writing exactly which services will be provided, what will not be done, and how the work will be carried out. This clarity protects both you and the client from misunderstandings and helps ensure ethical practice by preventing work beyond the agreed scope without proper authorization.

Therefore, the true statement is the one that reflects this boundary-setting role of the 600 Series—that the scope of the engagement is defined and limited, and any tasks outside that scope should be addressed separately or through a written amendment. A choice that suggests the 600 Series either doesn’t govern scope or allows for outside work without proper amendment would not fit CFP Board standards. For practical application, always document the scope in an engagement letter and handle any requests beyond that scope with a new engagement or a written addendum.