Reading 3: Introduction to the Global Investment Performance Investment, center, style, label, class

1215

Session 1: Ethical and Professional Standards
Reading 3: Introduction to the Global Investment Performance Standards (GIPS)

LOS c: Explain the requirements for verification.

 

 

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

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

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

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

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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.

1215

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

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

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

C) requires verification of individual composites.

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

luqian55

thanks a lot