CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Michael Griffin, CFA, and Judy Miller, CFA, began a joint research report on Tyson Corporation. Griffin visited Tyson's corporate headquarters for several days and met with all company officers. Prior to the completion of the report, Griffin was reassigned to another project. Miller utilized her and Griffin's research to write the report but did not include Griffin's name on the report because she did not agree with Griffin's conclusion, which was included in the final report. Did Miller violate any standards?
A. Yes, with respect to Misrepresentation.
B. Yes, with respect to Diligence and Reasonable Basis.
C. No
Explanation: Members are in compliance with CFA Institute's Standard V (A) Diligence and Reasonable Basis, if they rely on the research of another party who exercised diligence and thoroughness. Because Griffin's opinion did not agree with the final report, disassociating him from the report is one way to handle this difference between the analysts.

User Contributed Comments 10

User Comment
DPBass88 This question is confusing because it states " because she did not agree with Griffin's conclusion included in the report". That to me reads that although she didn't agree with his conlcusion it's still included in the report??
drods91 Agreed. That statement is key for determining of there was a violation or not.
DXR7KRK Guys I don't get it. Is Griffin's conclusion still there? Because if it is and she removed his name from the report then it would fall under Misrepresentation wouldn't it?
ascruggs92 I'm on the same page as everyone else here. The question seems to imply that his conclusion is included in the report, which, to me, sounds like a violation. However, the explanation of the answer seems to imply that his conclusion was left out of the because it disagreed with the final report, at which point, it makes sense that it is not a violation.
gerdvar I got confused too, however, the statement seems to imply that the conclusion wasn't included with the phrase "Miller utilized her and Griffin's research to write the report BUT...", wrong or right?
gfenney This is not right - as per the above, Griffin's conclusion should not have been in the report.
myron It is correct according to the standard. The key is "she did not agree with Griffin's conclusion".
ConnerVP1 So you can include another analyst's work but not acknowledge their contribution?
alexsar75 pg. 70 of the book. analyst who is no longer with the firm, the research had not been released yet, the firm retains right to continue using the work. Member or candidate may not reissue a 'previously released report' solely under his or her name.
aruffo The issue isn't whether she used the research, or the firm's right to use the work—the issue we're concerned about is whether it's misrepresentation to include Griffin's opinion but exclude Griffin's name.
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