Explanation

According to the Global Investment Performance Standards (GIPS):

A. is voluntary. - CORRECT. Verification under GIPS standards is indeed voluntary. Firms are not required to undergo verification, but if they claim compliance with GIPS, they must follow all requirements.

B. ensures the accuracy of a performance report. - INCORRECT. Verification does NOT ensure the accuracy of specific performance reports. Verification provides assurance that:

1. The firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis
2. The firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards

Verification is about compliance with processes and procedures, not about verifying the accuracy of specific performance numbers.

C. can be performed with respect to specific composites. - CORRECT. While verification is typically performed on a firm-wide basis, GIPS standards allow for verification of specific composites. This is sometimes referred to as "limited verification" or "composite-specific verification."

Key Points:

• Verification is voluntary under GIPS
• Verification provides assurance about compliance with GIPS standards, not accuracy of specific performance numbers
• Verification can be performed on a firm-wide basis or for specific composites
• A verified firm can claim that it has been verified, but cannot claim that specific composites or performance presentations have been verified