CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

According to the Global Investment Performance Standards (GIPS), which of the following statements are correct when dealing with Verification?

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.
The verification report must confirm the above.

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.
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