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. 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?
#2. The Money Laundering Regulations 2017 (MLR) made it a legal requirement that all regulated businesses must have a firm-wide/practice wide risk assessment on AML and CTF. Which regulation does this fall under:
#3. The SRA Accounts Rules require a client bank reconciliation to be carried out, completed and checked:
#4. A ‘Recharge’ is:
#5. Which one of of the following statements is correct?
#6. What is the Tax Point date of a Credit Note?
#7. 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?
#8. Financial statements should be prepared in a format which is:
#9. Who sets out the key objectives that all regulators must achieve?
#10. What should you request to properly verify a client’s source of funds?
#11. According to Google’s Aristotle project, which characteristic of a strong team is the most important:
#12. Under the SRA Accounts Rules, are you required to obtain the client’s approval prior to transferring costs to the business account?
#13. 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:
#14. The client bank reconciliation must be signed by:
#15. 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?
#16. On the day of an SRA AML visit the SRA will speak to selected fee earners. Usually this will be:
#17. What is the difference between the Profit and Loss Account and the Balance Sheet?
#18. A ‘Chamberlain’ bill is:
#19. A ‘Disbursement for VAT Purposes’ is:
#20. Which one of the following statements is true?
#21. A “qualified” accountant’s report means:
#22. 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?
#23. When does the Accountants Report (AR1) need to be sent to the SRA?
#24. 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?
#25. You pay the window cleaner for cleaning the windows of your offices. They are not registered for VAT.
What VAT rate should you select when posting the invoice to the accounting system?
#26. Emotional Intelligence means:
#27. The cost of any time taken in trying to return a residual balance to the client can be deducted from the balance held?
#28. The COFA is solely responsible for monitoring and controlling financial stability.
#29. You’ve pursued a bad debt through the court. The court has awarded you costs and interest. Do you:
#30. 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:
#31. 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?
#32. 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?
#33. 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
#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. 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?
#36. Withdrawals from the client bank account are recorded to the client cash book as:
#37. 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?
#38. Which of the following are NOT taxable VAT rates? *
Select all that apply:
