CFA Practice Question
Joe Green was caught padding expense bills charged to a client while on business trips several times in the past year. Furthermore, after repeated warnings, he continues to expense his personal bar tab and claim it as a reimbursement even though no client was entertained. Joe drinks excessively and also comes to work sometimes with alcohol on his breath in the morning. Many employees have complained about this practice to Joe's boss. However, Joe's uncle is a senior partner in the firm and Joe's immediate supervisors are reluctant to initiate a disciplinary action against him for fear of reprisal.
A. Since Joe has not committed any crime (a felony) or spent time in jail, he has nothing to worry about; no standard has been violated.
B. Joe has violated Standard I by repeated violations of company policy.
C. Joe drinks on his own time and his employer should have no problem with it. As long as Joe does not compromise his professional conduct or opinion, he does not violate the Code and Standards.
Explanation: Joe has shown habitual disregard for the company's expensing policies regarding personal bar tabs. Having alcohol on his breath has created a difficult work atmosphere for co-workers. Padding his expense account repeatedly shows a dishonest character. Joe has not represented himself as a professional with dignity and has violated Standard I in spirit.
User Contributed Comments 2
| User | Comment |
|---|---|
| shuyi | Key point: Company policy violated |
| Mikehuynh | Joe obviously violated I(V): Misconduct |