Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

Content from prior Q&As was included in the GIPS Standards Handbook as much as possible and many Q&As were archived. Change the Status drop-down filter to "Archived" to see the archived Q&As.

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  • Archived

    Effective: 1 August, 2012 - 31 December, 2019
    Categories: Performance Examinations
    Source: GIPS Executive Committee

    The recently revised Guidance Statement on Performance Examinations indicates that it is effective for all performance examinations contracted on or after 1 July 2012. On 15 May 2011, my verification firm entered into a 3 year contract to provide 3 separate annual verifications and performance examinations for the calendar years 2011, 2012, and 2013 for a specified composite. Does this mean that my verification firm does not need to adhere to the guidance in the revised performance examinations Guidance Statement for the entire 3 year term of our contract?

    No, the contract date was chosen to delineate the revised Guidance Statement on Performance Examinations’ effective date so that verification firms which had already commenced a performance examination would not have to switch to the revised Guidance Statement during the performance examination. In the case of multi-year performance examination engagements contracted prior to 1 July 2012, which cover subsequent performance examination periods, if a verifier has not yet commenced the performance examination for one or more of the years under the contract, the verifier is required to follow the revised Guidance Statement on Performance Examinations when the subsequent performance examinations are conducted. In the situation described in the question, if the 2011 performance examination had been started prior to 1 July 2012, then your verification firm does not need to adhere to the guidance in the revised Guidance Statement on Performance Examinations for the 2011 performance examination but can choose to do so. If both the 2012 and 2013 performance examinations had not commenced as of 1 July 2012, then your verification firm must follow the revised Guidance Statement on Performance Examinations when conducting the 2012 and 2013 performance examinations. Please note that verifiers must not back date performance examination engagement letters in order to circumvent the effective date of the revised Guidance Statement on Performance Examinations.