I thought the verification should be done by only 3rd part (per LOS 3.c). But question 13 in exam 3 (AM) of schweser notes seems to contradict it (it implies verification by own complies with GIPS and standards) Can some one take a look at it and comment pl
If a company choose to verify that they comply with GIPS they should use a 3rd party, however the company is not required to have an auditor verify compliance with GIPS.
can you expand…which exam?? checked but couldn’t see anything
From the Full GIPS Handbook page 153, section 3-9 " Once a firm complies with the Standards, it may voluntarily hire an independent third party to verify its claim of compliance. This third-party verification will increase the level of confidence in the firms claim of compliance" “Any independent third party can perform the verification. A firm cannot perform it own verification” Schweser is wrong and right. I am under the impression that verification is a confidence thing, and as GIPS is voluntary, not essential to GIPS compliance. However, according to GIPS itself, a firm cannot perform its own verification. So go with that, assume the question is wrong. You likely wont see such an easy GIPS question on the exam anyways.
question is listed on pg 135 vol I (Exam 3, AM), question 13.