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. 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?
#2. 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?
#3. 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:
#4. Which of the following is not an element of Emotional Intelligence
#5. You are acting for a client whose place of belonging is Guernsey and they are making a claim through the UK courts against a water provider for damages on a London property arising from water ingress which the client claims the provider is liable for.
When issuing a bill to the client, what VAT rate do you apply to your supply?
#6. The COFA must report all breaches to the SRA.
#7. 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?
#8. A ‘Disbursement for VAT Purposes’ is:
#9. Transparency Rule 4.1 covers the digital badge (sometimes called the clickable logo) which shows any website visitors that your firm is regulated and it gives them a link to the protection that provides. How will a website visitor know if the logo on your website is valid?
#10. Under the SRA Accounts Rules, are you required to obtain the client’s approval prior to transferring costs to the business account?
#11. A solicitor from ABC Law is acting for a farmer who is granting Company X with rights to put a wind farm on his land. The solicitor is advising on the contract/lease outlining the rights of the wind farm on the farmers’ land.
After the contract is completed ABC Law receive rental payments into client account each quarter.
Is this providing banking facilities?
#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. What is the definition of ‘costs’ within the SRA Glossary?
#14. True or false: the financial statements of private limited companies (LTD) must all use the same design and wording, set by Companies House
#15. Normal VAT Tax Point (time of supply) rules apply to Legal Aid work?
#16. 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?
#17. I no longer need to consider time frames when transferring costs (fees and disbursements) to the business account?
#18. A ‘Chamberlain’ bill is:
#19. The COFA is solely responsible for monitoring and controlling financial stability.
#20. The SRA has stated that it will take a more robust approach towards fines for persistent offenders in regard to the Transparency Rules. What is the maximum amount the SRA can fine a law firm?
#21. When dealing with residual balances that are £500 or less that are to be paid to a charity, your firm posts a journal from the business side of the client’s ledger and credits a nominal ledger in the name of the charity. You then transfer the residual balance from the client account to the business account.
Once a month, the payment to the charity is made from the charity nominal ledger. Is this permissible under the SRA Accounts Rules?
#22. Is a source of funds check always required?
#23. True or false: all incorporated entities must publish full accounts at Companies House
#24. 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?
#25. The petty cash tin is another form of business/office bank account?
#26. The SRA Accounts Rules require a business/office account to be reconciled?
#27. Which one of the following statements is true?
#28. What is the Tax Point date of a Credit Note?
#29. According to Google’s Aristotle project, which characteristic of a strong team is the most important:
#30. 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?
#31. 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:
#32. Money received from the Legal Aid Agency on account of disbursements that are not yet incurred or paid is?
#33. Which of the following are NOT taxable VAT rates? *
Select all that apply:
#34. Your firm is instructed by the landlord of a new development of commercial properties to prepare the lease agreements. You’re also instructed to receive, and hold in client account, the rental deposits that are paid by the tenants. These will be held until the lease comes to an end and any conditions, e.g. dilapidations, are met.
Is this a breach of the SRA Accounts Rules?
#35. On the day of an SRA AML visit the SRA will speak to selected fee earners. Usually this will be:
#36. 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
#37. You instruct a medical reporting agency to obtain copy-medico legal documents on behalf of a client that has been involved in a road traffic accident.
Is this cost a disbursement for VAT purposes or a recharge?
#38. A cash flow forecast is?
#39. You’ve pursued a bad debt through the court. The court has awarded you costs and interest. Do you:
#40. Which 2 options below are most likely to be reasons for deciding if a breach is serious?
Select all that apply:
