Which of the following statements is most likely correct regarding Global Investment Performance Standards (GIPS) verification? A. Verification ensures the accuracy of a composite presentation. B. In order to claim compliance with the Global Investment Performance Standards, firms must seek verification. C. Verification tests the soundness of a firm's policies and procedures to calculate performance in accordance with the Global Investment Performance Standards.

The correct answer is C. Verification tests the soundness of a firm’s policies and procedures to calculate and present performance in compliance with the GIPS standards. Option A is incorrect. Verification cannot ensure the accuracy of any specific performance presentation. Option B is incorrect. Verification is voluntary. Firms are not required to seek verification.

CFA Level 1 Question Of The Week - Ethical And Professional Standards (7) - CFA Level 1

Add A Reply

This topic has 1 reply, 1 voice, and was last updated Aug-197:00 am by Matt_AnalystPrep.

Author

Posts
- Matt_AnalystPrep
  Participant
  - CFA Charterholder
  08 Aug 2019 at 7:00 am
  Up
  5
  ::
  The correct answer is C.
  
  Verification tests the
  soundness of a firm’s policies and procedures to calculate and present
  performance in compliance with the GIPS standards.
  
  Option A is incorrect.
  Verification cannot ensure the accuracy of any specific performance
  presentation.
  
  Option B is incorrect.
  Verification is voluntary. Firms are not required to seek verification.
Author

Posts

Viewing 0 reply threads

You must be logged in to reply to this topic.