The AICPA Auditing Standards Board has issued guidance to practitioners for engagements to examine and report on aspects of an investment firm’s claim of compliance with the 2020 edition of the Global Investment Performance Standards (GIPS).
Guidance for this type of engagement, known as a verification, is contained in Statement of Position (SOP) 20-1, Reporting Pursuant to the 2020 Edition of the Global Investment Performance Standards.
SOP 20-1 also provides guidance for another type of attestation engagement, known as a performance examination, to examine and report on any of the investment firm’s composites or pooled funds and their associated GIPS reports. The new SOP updates SOP 12-1, Reporting Pursuant to the Global Investment Performance Standards, which addresses the 2010 edition of the GIPS standards and remains relevant for engagements that are performed using the 2010 edition.
SOP 20-1 takes effect upon issuance for engagements to report on an investment firm’s or asset owner’s compliance with the 2020 edition of the GIPS standards.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.