Explanation:
A. Incorrect because according to the GIPS standards, once a firm claims compliance with the standards, they may voluntarily hire an independent third party to perform a verification in order to increase confidence in the firm's claim of compliance. Therefore, Statement 1 is incorrect.
B. Incorrect because according to the GIPS standards verification is performed with respect to an entire firm, not on specific composites. Verification does not ensure the accuracy of any specific composite presentation. Therefore, Statement 2 is incorrect.
C. Correct because according to the GIPS standards, verification is performed with respect to an entire firm, not on specific composites. Therefore, Statement 3 is correct.
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Which of the following statements is accurate according to the GIPS standards? Statement 1: A firm must perform verification to claim compliance with the GIPS standards. Statement 2: Verification ensures accuracy of specific composite presentations. Statement 3: Verification is performed with respect to an entire firm.
A
Statement 1
B
Statement 2
C
Statement 3