Misrepresentation in Financial Reporting

Medium Cfa Institute Code And Standards Professionalism - Misrepresentation

As an investment analyst, you are preparing a report on a company that is about to go public. In your research, you come across a peer-reviewed academic study that discusses the potential risks associated with investing in this sector. You decide to include this study in your report, but you summarize and replace critical statements with more favorable interpretations to enhance the attractiveness of the company.

Which of the following actions would most clearly violate the CFA Institute Code of Ethics and Standards of Professional Conduct regarding misrepresentation?

Citing the study but including a disclaimer that interpretations may differ.

Accurately presenting the study's findings without alterations.

Summarizing the study while altering key statements to make them more favorable.

Hint

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% Correct85%