An analyst receives a report from his research department that summarizes and interprets a recent speech from the chairman of the U.S. Federal Reserve. The summary says that the chairman thinks inflation is under control. Based upon this summary, the analyst says in his next newsletter that inflation is under control. This is a violation of:
A) Standard V(A), Diligence and Reasonable Basis, and Standard V(B), Communication with Clients and Prospective Clients.
B) Standard V(A), Diligence and Reasonable Basis, only.
C) none of the Standards listed here.
Answer is quite easy but can trick you at the same time.
Pls be more precise while answering 作者: studyn 时间: 2011-7-13 17:12
A
Standard V(A), Diligence and Reasonable Basis: he needs to 'exercise.. independence, and throughness,... supported by appropriate research and investigation'. ' In using secondary research (in house research), must make reasonable and diligent effort to determine whether such research is sound'. He has not given any indication to have done so (e.g., check what the Fed chairman said to give such impression).
V(B), Communication with Clients and Prospective Clients. 'Distinguish fact and opinion'. Unless he has data to show that inflation IS under control, he can only says that he thinks inflation is under control (e.g., if having checked above and has independent research to support his belief).作者: Beatnik 时间: 2011-7-13 17:12
