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 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?
#2. 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:
#3. 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?
#4. 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?
#5. 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?
#6. Is it permissible to pass on the costs of conducting client due diligence as a disbursement under the AML under the money laundering regulations on to my client?
#7. 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?
#8. 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:
#9. What should you request to properly verify a client’s source of funds?
#10. A cash flow forecast is?
#11. The Legal Omsbudsman has the power to award compensation when a client wins their case. What is the highest figure the Legal Ombudsman can award?
#12. As soon as there is no longer a proper reason to hold client money, it must be returned to the client or third party for whom the money is held:
#13. You’re acting for a client whose place of belonging is Jersey. You have instructed a UK barrister on behalf of the client. The barrister has issued you with a VAT invoice addressed to your firm and has charged you £2,000 plus VAT.
When billed to the client, you would treat the cost as:
#14. The three principle money laundering offences are found in the Proceeds of Crime Act 2002 (POCA). In which sections can we find these offences:
#15. On the day of an SRA AML visit the SRA will look at selected matters. How many files will they ask to review?
#16. Money received from the Legal Aid Agency on account of disbursements that are not yet incurred or paid is?
#17. What is the definition of disbursement within the SRA Glossary?
#18. A ‘Recharge’ is:
#19. If client money is legitimately retained for a specified reason, are you required to regularly update the client?
#20. 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?
#21. 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:
#22. Who sets out the key objectives that all regulators must achieve?
#23. A court fee has been paid from the business account, what VAT rate do you analyse the payment to when posting to the accounts system?
#24. Within what period should your AR1 review be completed within:
#25. When should you conduct a source of funds check?
#26. A ‘Statement of Costs On Account’ bill is:
#27. When does the Accountants Report (AR1) need to be sent to the SRA?
#28. The SRA Accounts Rules require a business/office account to be reconciled?
#29. 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?
#30. Withdrawals from the client bank account are recorded to the client cash book as:
#31. You’re acting for the executors in dealing with the administration of a deceased person’s estate. The deceased was a British National and resided in the UK. However the executors and those you are corresponding with are based in Canada. There is UK property involved and it forms a significant portion of the estate along with UK based bank accounts.
When issuing the bill to the executors, is supply subject to standard rated VAT?
#32. When managing bulk disbursements (e.g. Land Registry or HMCTS), what is most important for efficiency?
#33. 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?
#34. 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?
#35. Which 2 options below are most likely to be reasons for deciding if a breach is serious?
Select all that apply:
