Performance Audit

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Dictionary Says

Definition of 'Performance Audit'

An audit performed on an asset manager by an outside accounting firm to verify that the performance figures shown to the public on marketing materials represent the true aggregate results of the firm's clientèle. The CFA Institute has established performance presentation guidelines, called global investment performance standards (GIPS), that must be maintained by asset managers.
Investopedia Says

Investopedia explains 'Performance Audit'

There are many stories about money managers showing the performance of only one or two specific accounts out of hundreds or more because the numbers looked much better than the rest. A performance audit allows for the verification of the performance numbers reported by the company to ensure that they are an accurate reflection of the true returns generated by the firm.
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'Performance Audit'

  • CFA Level 1 Study Guide - Financial Statements - The Auditor and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/auditor-audit-opinion.asp
    ... 1.26 Global Investment Performance Standards (GIPS); 1.27 GIPS: Composites And ... 6.25
    The Auditor and Audit Opinion; 6.26 Financial Reporting Objectives and ...

  • An Introduction To Fiduciary Advisors

    http://www.investopedia.com/articles/financialcareers/08/fiduciary-planner.asp
    ... Once a fiduciary advisor has been selected, he or she will be subject to
    an annual performance audit by an independent third party. ...

  • Ethical Investing: Corporate Governance | Investopedia

    http://www.investopedia.com/university/ethical-investing/ethical-investing6.asp
    ... ISS) has an executive compensation database, and its Governance Risk Indicators
    measure companies' governance performance on audit, board, compensation ...

  • Earnings Quality: Reviewing Non-Accrual Items | Investopedia

    http://www.investopedia.com/university/accounting-earnings-quality/earnings4.asp
    ... evidence is lacking, research in the area indicates that non-audit fee bribery is ...
    The decline in operating performance is amplified by the reversals of prior ...

  • CFA Level 1 Study Guide - Ethics and Standards - Global Investment ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/global-investment-performance-standards.asp
    ... 1.26 Global Investment Performance Standards (GIPS); 1.27 GIPS: Composites And ... 6.25
    The Auditor and Audit Opinion; 6.26 Financial Reporting Objectives and ...

  • CFA Level 1 Study Guide - Alternative Investments - Hedge Fund ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/hedge-fund-risks-performance.asp
    ... 1.26 Global Investment Performance Standards (GIPS); 1.27 GIPS: Composites And ... 6.25
    The Auditor and Audit Opinion; 6.26 Financial Reporting Objectives and ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard III-D ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-performance-presentation.asp
    ... 1.26 Global Investment Performance Standards (GIPS); 1.27 GIPS: Composites And ... 6.25
    The Auditor and Audit Opinion; 6.26 Financial Reporting Objectives and ...

  • Examining A Career As An Auditor

    http://www.investopedia.com/articles/financial-careers/08/career-auditor-auditing.asp
    ... investigation may require more work or reveal embarrassing processes, performance
    and/or fraud ... they should keep in mind the objectives of the audit (for instance ...

  • Governance Pays

    http://www.investopedia.com/articles/fundamental/03/070903.asp
    ... and fire the company's auditors and approve non-audit services from ... management
    compensation should be determined by measurable performance goals (shareholder ...

  • Financial Statement Manipulation An Ever-Present Problem For ...

    http://www.investopedia.com/articles/fundamental-analysis/financial-statement-manipulation.asp
    ... the company's financial condition in order to meet established performance expectations
    and ... because they are compensated by the very companies that they audit. ...

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