Reading 3: Introduction to the Global Investment Performan Investment, statements, describes, following

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1.Which of the following statements most accurately describes verification under the Global Investment Performance Standards (GIPS)? GIPS verification:

A)   is required for a firm to claim GIPS compliance.

B)   is required for all composites created after January 1, 2000.

C)   requires a verification report to be issued for the entire firm.

D)   requires verification of individual composites.

2.When verifying a firm’s compliance with Global Performance Investment Standards (GIPS), the verifier must:

A)   state that verification is a requirement for GIPS compliance.

B)   clearly identify the composites for which verification has been performed.

C)   disclose whether the verification was performed by the firm’s internal auditors or a third party.

D)   attest that the firm’s processes and procedures are established to present performance in accordance with GIPS requirements.

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答案和详解如下：

1.Which of the following statements most accurately describes verification under the Global Investment Performance Standards (GIPS)? GIPS verification:

A)   is required for a firm to claim GIPS compliance.

B)   is required for all composites created after January 1, 2000.

C)   requires a verification report to be issued for the entire firm.

D)   requires verification of individual composites.

The correct answer was C)

A single verification report is issued with respect to the entire firm; GIPS verification cannot be carried out for a single composite.

2.When verifying a firm’s compliance with Global Performance Investment Standards (GIPS), the verifier must:

A)   state that verification is a requirement for GIPS compliance.

B)   clearly identify the composites for which verification has been performed.

C)   disclose whether the verification was performed by the firm’s internal auditors or a third party.

D)   attest that the firm’s processes and procedures are established to present performance in accordance with GIPS requirements.

The correct answer was D)    

The verifier must attest that the firm has complied with all GIPS requirements for composite construction on a firm-wide basis and that the firm’s processes and procedures are established to present performance in accordance with the calculation methodology, data, and format requirements of GIPS. Verification is not a GIPS requirement. If performed, verification applies to the firm as a whole, not to individual composites, and must be performed by an independent third party, not the firm itself.

 

 

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