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

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    • Matt_AnalystPrep
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      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.
    • Matt_AnalystPrep
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      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.

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