Question #32 - Reading 42.1 Standards of Professional Conduct Guidance for Standards I

Reading: Reading 42.1 Standards of Professional Conduct Guidance for Standards I

PDF File: Reading 42.1 Standards of Professional Conduct Guidance for Standards I.pdf

Page: 13

Status: Incorrect

Correct Answer: A

Your Answer: C

Question

An analyst has been writing research reports on a company for many years. As part of the analyst's continuing research efforts, the analyst allows the firm to fly him to the firm's headquarters and put him up in the guest quarters the company has for all corporate visitors. According to Standard I(B), Independence and Objectivity, this is:

Answer Choices:

A. a violation no matter what the circumstances

B. a violation if the headquarters are within reasonable driving distance from the analyst's home

C. not a violation under any circumstances

Explanation

If such a trip is "out-of-the-way", payment by the company for the trip is acceptable. If the headquarters are within reasonable driving distance, the analyst should drive there. (Module 42.1, LOS 42: I(B))

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