CFA Practice Question
According to the Global Investment Performance Standards (GIPS), which of the following statements are correct when dealing with Verification?
II. Verification tests whether the firm has processes and procedures in place to calculate and present performance results to ensure that they comply with the GIPS.
III. A verification report is issued with respect to the whole firm and NOT just with respect to a single composite.
I. Verification tests whether the firm has complied with the composite construction requirements on a firm-wide basis.
II. Verification tests whether the firm has processes and procedures in place to calculate and present performance results to ensure that they comply with the GIPS.
III. A verification report is issued with respect to the whole firm and NOT just with respect to a single composite.
Correct Answer: All of the above
Verification tests:
- Whether the firm has complied with the composite construction requirements on a firm-wide basis.
- Whether the firm has processes and procedures in place to calculate and to present performance results to ensure that they comply with the GIPS.
A verification report is issued in respect to the whole firm and NOT just with respect to a single composite.
User Contributed Comments 1
| User | Comment |
|---|---|
| To-be-CFA | Independent review of a firm's performance and procedures by a third-party. Applies to firm on whole, and not to individual composites. |