Verification refers to the independent review of a firm's performance measurement processes and procedures. Verification applies to the firm as a whole, not to individual composites.
Again, the focus of verification is not on individual composites, but on the processes the firm follows to form composites and calculate and report performance.
At this point, verification is not mandatory, but it is strongly recommended. Firms may claim compliance, but independently-verified compliance adds credibility to those claims. It is recommended that firms have all years for which they are claiming compliance verified.
|jainrajeshv: It is talking about the independent review of compliance of GIPS|
|sahilb7: Yes. An independent review of the firm as a whole. Not of the indivudual composites.|
|malecu90: If the GIPS standards are not mandatory, why is verification based on them solely? If a firm doesn't follow GIPS standards, can it still be compliant?|
|xp_acctant: who does the verification?|