Understanding GIPS Verification Requirements

The Global Investment Performance S\tandards (GIPS) are a set of ethical principles that provide guidance on how investment performance is to be calculated and presented. A critical component of GIPS is the concept of verification, which signifies the process by which a firm’s performance results are tested for adherence to GIPS. Verification ensures that firms are accurately presenting their performance in accordance with GIPS s\tandards. As an investment professional, unders\tanding the verification process is essential for ensuring transparency and credibility in performance reporting.

Which of the following statements regarding verification under GIPS is correct?