Question #37
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: 19
Status: Unattempted
Question
An analyst writes a report and includes the forecasts of an econometric model developed by the firm's research department. The analyst identifies the source of the forecast and includes all the relevant statistics concerning the model. With respect to diligence and reasonable basis, the analyst has:
Answer Choices:
A. violated the Standards by relying on model forecasts
B. complied with the Standards
Explanation
Members and candidates may reasonably rely on their firms' research departments for
analysis and remain in compliance with Standard V(A) Diligence and Reasonable Basis.
(Module 42.8, LOS 42: V(A))