› CFA › CFA Level 1 › CFA Level 1 Question of the Week – Ethical and Professional Standards

CFA Level 1 Question of the Week – Ethical and Professional Standards

Add A Reply
Login
  • Author
    Posts
    • Avatar of Matt_AnalystPrepMatt_AnalystPrep
      Participant
        • CFA Charterholder
        04 Aug 2019 at 9:44 am
        Up
        3
        ::

        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.
      • Avatar of Matt_AnalystPrepMatt_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 1 reply thread
      • You must be logged in to reply to this topic.