The Compliance Conundrum Quiz is a compliance quiz consisting of 50 randomly generated questions that are populated automatically, each day. There is a time limit of 1 hour and the quiz will automatically finalise and submit when the time runs out.
#1. You instruct a third party contractor to represent your client at a police station who has been arrested. The third party issues you with an invoice addressed to your firm with no VAT as they are not VAT registered. You pass this cost on to your client.
How should you show it and treat it on your bill/invoice?
#2. What is the Tax Point date of a Credit Note?
#3. The COFA is solely responsible for monitoring and controlling financial stability.
#4. When building a team, effective leaders:
#5. The interest received on for money held in a business account is:
#6. A ‘Recharge’ is:
#7. When does the Accountants Report (AR1) need to be sent to the SRA?
#8. You’re firm is acting for the executors in dealing with the administration of a deceased person’s estate and have sent a bill to the executors, together with the estate accounts for approval. You have asked the solicitor that is acting if you can transfer costs from the client account to the business account to discharge the bill in full. The solicitor has replied “no, as costs are not properly due”.
Is this a breach of SRA Accounts Rule 4.2?
#9. Your firm is acting for a client and has instructed a process server to serve legal documents to a third party.
When including the cost of the process server in your bill of costs, you treat it as a:
#10. If client money is legitimately retained for a specified reason, are you required to regularly update the client?
#11. Your firm deals with estate matters and you incur and pay for probate court fees. You also pay for additional copies of the grant of probate. These copies are often sent out to third parties in order to speed up process. You pass the cost of the additional copies on to the estate.
How should you show them and treat them on your bill/invoice?
#12. Most law firms now use electronic ID and verification tools as part of their client onboarding. These tools are there to help you:
#13. Is it permissible to issue the client with a bill of costs for an unpaid, not yet incurred, disbursement?
#14. The bank has offered you a fixed term, high interest, client account. You would need to place £2 million in the account for a fixed term of 1 year to obtain the rate.
Is this permissible?
#15. True or false: the SRA Accounts Rules set out certain requirements for law firm financial statements, such as how client account should be treated on a balance sheet
#16. Double-entry bookkeeping refers to:
#17. In a contentious case, the VAT tax point will be the date of the invoice, provided the invoice is issued within how long after the work is completed?
#18. You pay the firm’s practising certificates from the business account.
When posting the transaction, What VAT rate should you select when posting the payment to the accounting system?
#19. Every law firm, regardless of the type of work they do, must have their complaints handing information on their website or in another format if they don’t have a website.
#20. The Sales Ledger Control Account (Debtors) is:
#21. How should you decide the level of source of funds enquiry needed?
#22. You must obtain physical copies of client account bank statements.
#23. The COFA must report all breaches to the SRA.
#24. Your firm prepare a lot of wills and fixed fee interviews as one-off transactions for clients. However, instead of opening an individual client ledger for each client, you have a general ledger on which you record the details of each client and the costs received.
Is this a breach of the SRA Accounts Rules?
#25. You purchased a computer for £800.00. You sold it for £1,000.00. You purchased it again for £1,100.00. You sold it again for £1,300.00
What is the profit/(loss)?
#26. The maximum fine the SRA can impose on a firm for AML failures and breaches of the MLR2017 is £25,000:
#27. I no longer need to consider time frames when transferring costs (fees and disbursements) to the business account?
#28. You’ve pursued a bad debt through the court. The court has awarded you costs and interest. Do you:
#29. True or false: all incorporated entities must publish full accounts at Companies House
#30. Which of the following actions is an example of good leadership?
#31. Which of the following is the best description for relationship conflict?
#32. The three principle money laundering offences are found in the Proceeds of Crime Act 2002 (POCA). In which sections can we find these offences:
#33. Your firm is acting for a client. The case is a criminal matter. The fee earner instructs a specialist to produce video copies of CCTV footage where the action is slowed down, hard copies of individual frames and enhanced/enlarged sections of images are produced. The cost of this service is being passed on to the client.
When billed, the cost is a:
#34. On the day of an SRA AML visit the SRA will speak to selected fee earners. Usually this will be:
#35. You have instructed an interpreter in order for your client to be able to communicate with you or to enable your client to understand Court proceedings. The cost of the interpreter is being passed on to the client. When billed, the cost is:
#36. Your firm acted for a client in the sale of commercial premises. The transaction has been completed and the firm are in the process of accounting to the client for the net proceeds of sale. Independently of this retainer, the client’s son has instructed another solicitor in your firm to act for him in buying a flat.
The father has asked your firm to retain enough money to cover his son’s legal fees and to send the balance to him. Your firm is concerned that by transferring the money to the son you may be in breach of rule 3.3.
Is this providing banking facilities?
#37. If a business expects to spend more than it earns, it becomes known as what?
#38. Under the Proceeds of Crime Act and the Money Laundering Regulations all regulated businesses must have a nominated officer or MLRO. What do the initials MLRO stand for
#39. The best leaders have one type of leadership style and stick to it consistently
#40. You’ve taken a debit card payment from a client for money on account of search fees. The card used is for a personal bank account. A partner of your firm would like to recharge the costs incurred in taking the card payment on to the client.
Is it permissible to pass the costs of taking the card payment on to the client?
#41. What is the name given to the cash flow method where the cash flow forecast predicts when cash will be coming in and out of the business at specific points in time i.e. the exact day or week in a month?
#42. Which of the following are NOT taxable VAT rates? *
Select all that apply:
