CIMA BA4 · Chapter 2 · Question 10 of 10
Which statement best describes the 'reasonable and informed third party' test used in the CIMA Code of Ethics?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) It asks whether a hypothetical person with relevant knowledge, weighing all the specific facts known to the member, would be likely to reach the same conclusions
Explanation
The test considers whether the same conclusions would probably be reached by another party who has the relevant knowledge and experience to understand and evaluate the appropriateness of the member's conclusions, weighing all the relevant facts. It is an objective benchmark, not the view of a manager, a court or an uninformed public.
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