Question #2
Reading: Reading 42.5 Standards of Professional Conduct Guidance for Standards V
PDF File: Reading 42.5 Standards of Professional Conduct Guidance for Standards V.pdf
Page: 1
Status: Correct
Correct Answer: B
Question
An analyst receives a research report from a colleague. The colleague's report has an elaborate table with performance data on publicly traded stocks. The colleague says the data in the table consists of measures provided by Standard & Poor's. The analyst finds the table a useful reference for a report she is writing. She uses several pieces of data from the table. The analyst is potentially in violation of:
Answer Choices:
A. Standard V(A), Diligence and Reasonable Basis, if she does not first verify the data in the table is accurate
B. no particular standard because this is appropriate activity
C. Standard I(C), Misrepresentation, concerning the use of the work of others
Explanation
Since the data in the table supposedly comes from Standard & Poor's, a recognized data
source, the analyst does not have to cite the source of the data. However, the analyst
needs to use reasonable care and verify that the data is accurate by going back to the
source. Had the analyst printed the table prepared by her colleague without
acknowledgement, the analyst would have violated Standard I(C), Misrepresentation.
(Module 42.8, LOS 42: V(A))