The Compliance Conundrum Quiz

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.

 
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Results

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QUIZZES

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EVENTS

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#1. You’re acting for a client in respect of a divorce. Your client’s place of belonging is Spain. Your firm’s place of belonging is the UK.

Under the post Brexit VAT rules, when invoicing the client, what tax rate do you apply?

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#2. What is the name given to the ledger layout commonly used within legal practice?

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#3. The SRA Accounts Rules require a client bank reconciliation to be carried out, completed and checked:

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#4. The three principle money laundering offences are found in the Proceeds of Crime Act 2002 (POCA). In which sections can we find these offences:

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#5. If you receive notification of an SRA Forensic Investigation, does the SRA provide a reason?

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#6. Is it permissible to issue the client with a bill of costs for an unpaid, not yet incurred, court fee?

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#7. I no longer need to consider time frames when transferring costs (fees and disbursements) to the business account?

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#8. A fee earner has issued a VAT invoice to a client and sent it via email. They have also sent a physical copy in the post.

Is this permissible?

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#9. Payments made out of the client bank account are recorded to the client cash book as:

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#10. According to Google’s Aristotle project, which characteristic of a strong team is the most important:

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#11. What is the name given to the VAT that is due on your taxable supplies i.e your fees/expenses and vatable disbursements?

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#12. 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?

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#13. Firms are allowed to pay residual balances to a charity of the firm’s choice provided the firm complies with the SRA’s prescribed circumstances.

They do not need to make an application to the SRA if the balance is:

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#14. Your firm acted for a client in the sale of commercial premises which is now completed. Your firm are in the process of accounting to him for the net proceeds of sale. Independently of this retainer, the client’s daughter has instructed another solicitor in your firm to act for her in buying a flat.

The father has asked the firm to retain enough money to cover his daughter’s legal fees and to send the balance to him.

Is this providing banking facilities?

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#15. You’re acting for VAT registered business client in a litigation matter. Your services were provided to and used by your client. A third party has agreed to pay your client’s legal costs and you have issued the payer with a note of your costs requesting the full amount. The payer has stated that they’re liable for the net amount only and that your client should discharge the VAT amount.

Is the payer correct?

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#16. Which of the following is not an element of Emotional Intelligence

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#17. The client bank reconciliation must be signed by:

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#18. What is the difference between the Profit and Loss Account and the Balance Sheet?

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#19. Rule 1.5 of the Transparency Rules states that certain costs information must be included in the information on the website. Which one of the following does not have to be included in that information?

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#20. You’ve pursued a bad debt through the court. The court has awarded you costs and interest. Do you:

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#21. You operate various client’s own accounts. SRA Accounts Rule 10 appears to require you to carry out a bank reconciliation for these accounts.

Are you required to prepare a three way bank reconciliation every 5 weeks if you can’t obtain bank statements from the bank or building society?

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#22. The maximum fine the SRA can impose on a firm for AML failures and breaches of the MLR2017 is £25,000:

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#23. I no longer need to consider time frames when transferring costs (fees and disbursements) to the business account?

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#24. A ‘Statement of Costs On Account’ bill is:

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#25. Your practice is a traditional partnership. The partners of the practice administer oaths.

Are the fees received for administering the oaths subject to output VAT?

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#26. The interest received on general client account is:

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#27. You’re acting for a client in respect of a compromise agreement. The employer has agreed to pay your client’s costs and has asked if you would address your invoice to them?

What would you issue the payer?

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#28. Section 18 of the Legal Sector Affinity Group (LSAG) guidance covers red flags and warning signs for us to look out for regarding AML and CTF. If we have red flags and warning signs come up we are not allowed to take on the client:

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#29. On the day of an SRA AML visit the SRA will look at selected matters. How many files will they ask to review?

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#30. Double-entry bookkeeping refers to:

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#31. A cyber-attack cannot be reported by the COFA as it is not mentioned in the SRA Accounts Rules and is unlikely to result in a serious breach under the SRA Accounts Rules?

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#32. The MLRO will receive internal suspicious activity reports and then make their report, if necessary, to:

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#33. The practice-wide risk assessment will be required by the SRA as one of the most important pieces of documentation in relation to AML. It is a living document and should be updated:

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#34. 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

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#35. If assisting clients with the sale or purchase of high-value assets like houses, which of the following should be a key focus in AML checks?

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#36. 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?

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#37. A client bank account must contain the word ‘Client’ within the account name?

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#38. When dealing with residual balances, instead of recording the payment to the charity from the client’s ledger, your firm moves the residual balance to a ledger in the name of the charity. The payment is then recorded and made from that ledger every six months.

Is this a breach of the SRA Accounts Rules?

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#39. The SRA Accounts Rules require a business/office account to be reconciled?

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#40. The Transparency Rules 2018 form part of the SRA Standards and Regulations 2019 although they were released nearly a year before the Standards and Regulations. Why was this?

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#41. Business “lock up” refers to:

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#42. Under the SRA Accounts Rules, are you required to obtain the client’s approval prior to transferring costs to the business account?

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#43. Which one of of the following statements is correct?

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#44. 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?

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#45. Your firm is acting for a client in respect of a purchase of a residential property. The lawyer applies for an OS1 search direct from the Land Registry. The search result reveals that there has been alterations made to the register since the date the Official Copies were produced by way of a restriction. The lawyer advises the client on the results of the search.

When billed to the client, you would treat the cost as:

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#46. One of the equity partners of your firm is selling a property she owns solely. There is no mortgage on the property. She has asked for the sale proceeds to be sent to the firm and has asked you what bank account details she should provide to the other side solicitors.

You inform her to provide the:

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#47. A ‘Chamberlain’ bill is:

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#48. Which of the following are NOT taxable VAT rates? *

Select all that apply:

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#49. 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?

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#50. Most law firms now use electronic ID and verification tools as part of their client onboarding. These tools are there to help you:

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