A client asks a junior whether the review engagement is complete. It is not; the junior says "we're in good shape" and lets the client believe it is finished. This is:
A client asks a junior whether the review engagement is complete. It is not; the junior says "we're in good shape" and lets the client believe it is finished. This is:
Answer
Creating a false impression — a violation even though no lie was told
Options - A. Creating a false impression — a violation even though no lie was told - B. Not a violation, because every statement made was literally true - C. Taking unfair advantage of the client's lack of expertise - D. Abuse of power over a client who depends on the firm Why - A. Correct — allowing a false belief to stand when the client relies on you is the false-impression category. Silence is enough. - B. Literal truth is not the test. The category exists precisely for cases where nothing false is said and a false belief is left standing. - C. Unfair advantage is exploiting a weak bargaining position for gain. Here the junior gained nothing; the wrong is the misleading belief. - D. Abuse of power is mistreating someone under your authority. A client is not under the junior's authority.
OpenStax Business 2.1 (categories of unethical activity); concept map C05