c. explain the requirements for verification.
For GIPS, what is Verification?
Verification refers to the independent review of a firm's performance measurement processes and procedures.
Does Verification apply to the firm as a whole or only to its individual composites?
Verification applies to the firm as a whole, not to individual composites.
What are the two verification tests?
1. Whether the firm has complied with GIPS composite construction requirements on a firm-wide basis.
2. Whether the firm's processes and procedures are designed to calculate and present GIPS-compliant performance results.
Is verification intended to validate individual composites or the process that the firm follows to form composites and calculate and report performance?
Verification is for the process that is used, not to validate individual composites.
Is Verification of GIPS performance measurement processes and procedures mandatory?
No, but it is strongly recommended that they have all years for which they are claiming compliance verified.