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.
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ArchivedEffective: 1 October, 2006 - 30 April, 2013Categories: Performance ExaminationsSource: GIPS Executive Committee
We are a verification firm and have been hired to conduct a verification for ABC Asset Management Firm. In addition to the verification, we have also been hired to conduct a performance examination on the ABC Large Cap Composite. What language must be included in our performance examination report?The GIPS standards do not specify any particular format for the performance examination report issued by verifiers. There are several options for the language that can be included in a performance examination report. When the same verifier performs both the verification and performance examination, a commonly used template makes reference to both. The verification firm could consider using the language provided in the following sample report, and should also add references to any professional standards to which the verifier might be held.
ABC Asset Management Firm
Re: Verification of ABC Asset Management Firm and Performance Examination of ABC’s Large Cap Composite
This verification has been performed for the period from 1 January 2000 to 31 December 2006 for ABC Asset Management Firm Inc. (the investment management subsidiary of QRS Bank), and confirms that in our opinion:
• the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis, and
• the firm’s processes and procedures are designed to calculate and present performance results in compliance with the GIPS standards.
Also, in our opinion:
• for the period from 1 January 2000 through 31 December 2006, the firm has constructed and calculated its Large Cap Composite in compliance with the GIPS standards, and
• the accompanying presentation of the Large Cap Composite is in compliance with the GIPS standards.
We conducted this verification in accordance with the verification procedures set forth in the GIPS standards and performed this performance examination in accordance with the performance examination procedures set forth in the Guidance Statement on GIPS Performance Examinations.
ABC Asset Management Firm’s management is responsible for compliance with the GIPS standards, the design of its processes and procedures, and for ABC’s Large Cap Composite presentation. Our responsibility is to express an opinion based on our verification and performance examination.
This report does not attest to the accuracy of any composite presentation of ABC Asset Management Firm other than the firm’s Large Cap Composite.
XYZ Verification Company
15 March 2007