Question #5
Reading: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV
PDF File: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV.pdf
Page: 2
Status: Correct
Correct Answer: B
Question
Karen Dalby, CFA, volunteers on her church's finance board but receives no cash compensation so she does not report the arrangement to her employer. Board compensation is limited to an annual retreat to Hawaii, but the accommodations are modest. Dalby does not enjoy the retreat and often considers skipping the event entirely. Dalby is most likely:
Answer Choices:
A. "Loyalty."
B. "Additional Compensation Arrangements."
C. in violation of Standard IV(
Explanation
Dalby is in violation of Standard IV(B) "Additional Compensation Arrangements."
Nonmonetary compensation may still create a conflict of interest.
(Module 42.7, LOS 42: IV(B))