- Suppose a firm has prepared and presented performance details according to provisions as per GIPS. 2) As per GIPs verification is only voluntary not mandatory. 3) On pg no. 223 vol-5 in schweser notes, it says that after verification, the verifier may observe that the firm is not in compliance due to non-availability of documents or whatever be the reason and issue a letter to the company to that effect. Now my question is that, since its not mandatory for verification, and the company engages them on its own, even after receiving the non-compliance letter from verifer, can the firm CLAIM complaince by simply putting the verifier’s letter in the dust-bin as if it has not engaged the verifier.
Without a proper verification report, the firm cannot claim verification, but can still claim compliance. However, doing so in this case would violate the spirit of the GIPS which is an ethic standard.