Performance Examination

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sparty419

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A firm that is considering GIPS compliance is considering verification too. The firm can seek to have a detailed Performance Examination:
A) on select composites only after the whole firm has been verified.
B) only on all composites as part of the firm wide verification.
C) on select composites as part of the firm wide verification.
The correct answer was A.
Section III.C: After the firm has been verified, as evidenced by a verification report, it may additionally choose to have a detailed Performance Examination conducted on one or more specific composites
I don’t see this anywhere. Could someone expand on this?
 
After the firm has been verified as GIPS compliant , the firm can have the verifier conduct a performance examination ( detailed analysis to determine if specific composites are adhering to all GIPS guidelines ) .
Think of it as an optional voluntary ” Composite ” verification .
 
Thought I had most of GIPS down. Don’t ever remember seeing this though.
 
The chances of something like that being asked are like .000001 % . Level 3 is more big picture I doubt they would focus on the minutae like that
 
yea…i mean..am sure its not a big deal…but seeing things like this when i feel i am gaining confidence just makes me feel like i am missing other minute things too..which could add up..i dont know why schweser likes doin this to us…
but anyways…i am still not able to find out where this is from..it says its in los 49.t…but cant see if…
 
I would look in the CFAI text and make sure it still applies (could be an old schweser q).
I would do it myself but I dont have the bookswith me.
 
Its definitely is in CFAI text. I missed a question on this topic from QBank. I had the same reaction, that I never had heard of such a thing, but its definitely in there. The main point is that even if you further examinations on composites you still cannot claim composite verfication. Only Firm-wide verification.
 
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