I(D): Misconduct
Incorrect.
The standards only suggest one of those procedures.
Members and candidates must not commit fraud, be dishonest, be deceitful, or engage in any activity that has a negative impact on their professional character. This standard focuses on professional conduct and not on members' or candidates' personal lives.
What do you think would _not_ be covered by the misconduct standard?
Correct.
Although speeding is against the law, it does not relate to professional activities.
In summary:
[[summary]]
Incorrect.
This is a violation of the standard and the law.
Incorrect.
Not only is this a violation of the standard, it could land an individual in jail. Feel free to do an Internet search for Bernie Madoff.
Incorrect.
This would reflect badly on a member’s professional reputation.
The standards provide suggested compliance procedures for firms to follow regarding misconduct.
Which of the following summarizes the misconduct procedures?
Correct.
The three compliance procedures suggest for firms to implement that address employee misconduct are:
* Subscribe to a code of ethics
* Provide all employees a list of potential violations and punitive penalties for violations
* Check references on potential employees
Incorrect.
The standard focuses on professional activities.
Stealing a client’s money
Engaging in a Ponzi scheme
Driving faster than the speed limit
Lying on corporate expense reports
Check employees credit reports, provide a list of potential violations, and monitor corporate emails.
Have employees subscribe to a code of ethics, conduct regular drug tests, and check social media accounts for misconduct.
Have employees subscribe to a code of ethics, provide a list of potential violations, and conduct a background check on potential employees that includes talking to references.
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