Participation or Association with Violations by Others: Which action would be the best?

Hi, I think the answer of the question below is A, but I am not 100% sure…
The answer B could be right if it’s an extreme case, and the answer C also looks correct when the first step to attempt to stop behavior by bringing it to the attention of the employer is unsuccessful.

Does anyone tell me whether my understanding is correct or not?

Thank you.

Larry Becker is a CFA charterholder and an analyst with a brokerage firm. He has become aware that his firm, as underwriter for a new issue of the common stock of XYZ, Inc., has issued a prospectus that materially overstates the financial condition of XYZ. The best course of action for Becker to take would be to:

A Report this findings to the appropriate supervisory person in his firm.
B Resign from the firm to clearly dissociate himself from the violation.
C Confine his activities to areas that are clearly unrelated to the underwriting of XYZ shares.

I agree. The first action should be an active one. In this case reporting to the supervisor makes most sense for the reasons you stated above. The overstatement could be due to accident or negligence for all we know in this problem description. The ball then goes to the firm’s court. If they don’t do anything, thrn the CFA must consider step 2 type of actions. Cheers you got this👍

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Thank you, Greybeard_The_Elder. I got it now.

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