CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Which of the following is not correct regarding CFA Institute's GIPS?
A. A firm cannot claim that they were in compliance with the GIPS unless they comply in all required material respects with the GIPS.
B. The GIPS are explicitly incorporated in the Standards of Professional Conduct.
C. The GIPS are voluntary standards for the industry.

User Contributed Comments 5

User Comment
MUSK I thought GIPS are voluntary, why is 'A' correct?
solnce The Standards are voluntary, but some aspects of them are mandatory and some are recommended. It is your choice to comply with the GIPS or not. But if you decided to claim your complaince, then some aspects of the GIPS should be be done anyway and some may be or may not be done (verification, for example. It is only recommended). So, nothing is wrong with the notes.
coolnan Thanks-solnce.
krisscfa Solnce...good explanation
TammTamm Thanks solnce, it makes sense now.
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