Purpose of Verification in GIPS

Very Easy Global Investment Performance Standards Verification

Global Investment Performance Standards (GIPS) are designed to ensure fair representation and full disclosure of investment performance. A key aspect of GIPS is the verification process, which assesses a firm’s compliance with GIPS standards. Verification is performed by an independent third party and is intended to enhance the credibility of a firm’s performance presentation. Which of the following statements accurately describes the purpose of verification under GIPS?

Verification confirms that a firm has adhered to the GIPS standards for a specified number of years.

Verification assesses whether the performance results presented by the firm are complete and accurate.

Verification is only necessary when a firm claims compliance with GIPS.

Hint

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