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

Matt_AnalystPrepMatt_AnalystPrep MontrealPosts: 126 Associate
edited December 2017 in CFA Practice Questions

Which of the following statements is most likely correct regarding Global Investment Performance Standards (GIPS) verification?

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CFA Level 1 Question of the Week - Ethical and Professional Standards 6 votes

A. Verification ensures the accuracy of a composite presentation.
33% 2 votes
B. In order to claim compliance with the Global Investment Performance Standards, firms must seek verification.
0% 0 votes
C. Verification tests the soundness of a firm's policies and procedures to calculate performance in accordance with the Global Investment Performance Standards.
66% 4 votes
moyo

Comments

  • 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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