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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Unfortunately, you’ve not passed. Don’t beat yourself up – this was a beast of a quiz. However, you might want to consider booking on to some training to further your knowledge.
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#1. 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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#2. Payments made out of the client bank account are recorded to the client cash book as:
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#3. If a team member makes a mistake you should:
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#4. If client money is legitimately retained for a specified reason, are you required to regularly update the client?
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#5. When the SRA have contacted you and confirmed a date for an AML visit you will need to send the requested documents to them usually within:
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#6. 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
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#7. The interest received on for money held in a business account is:
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#8. I no longer need to consider time frames when transferring costs (fees and disbursements) to the business account?
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#9. Which of the following are NOT taxable VAT rates? *
Select all that apply:
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#10. When a client needs to make a complaint about your firm, they must follow the firm’s complaints procedures. If they are not happy with the way the complaint has been dealt with, they will then take it further by going to the Legal Ombudsman (LeO). They must make their complaint to LeO within which time scale after the firm’s final response to them?
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#11. You instruct a medical reporting agency to obtain copy-medical 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?
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#12. The COFA must report all breaches to the SRA.
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#13. The SRA Accounts Rules require a business/office account to be reconciled?
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#14. 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:
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#15. 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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#16. You've been instructed by a parent company to act for a subsidiary. The parent company belongs in the UK. The subsidiary belongs in France. You need to issue a VAT invoice for £10,000. Who do you address your VAT invoice to and what VAT rate do you apply?
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#17. A 'Recharge' is:
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#18. Money received from the Legal Aid Agency on account of disbursements that are not yet incurred or paid is?
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#19. The bank has charged you for sending funds electronically. It is agreed with the client that the cost charged by the bank will be passed on to the client. You are NOT charging the client an administration fee for sending the payment.
How should this cost be shown on the bill to the client?
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#20. Which of the following is responsible for compliance with the SRA Accounts Rules?
Select all that apply:
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#21. 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)?
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#22. Who sets out the key objectives that all regulators must achieve?
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#23. In law firms that are transactional, the MLRO will submit suspicious activity reports often asking for a Defence Against Money Laundering (DAML) or consent to proceed. When they have been received the NCA have how many days to respond (notice period):
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#24. A bill of costs must be signed by a partner/director or member?
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#25. If a business expects to spend more than it earns, it becomes known as what?
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#26. A cash flow forecast is?
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#27. 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?
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#28. Is it permissible to issue the client with a bill of costs for an unpaid, not yet incurred, court fee?
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#29. 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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#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?
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#31. 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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#32. 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?
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#33. 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?
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#34. Which 2 options below are most likely to be reasons for deciding if a breach is serious?
Select all that apply:
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#35. If the NCA refuse to give us a DAML on day five of the notice period, we enter into what is known as the moratorium period which is up to:
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#36. The cost of any time taken in trying to return a residual balance to the client can be deducted from the balance held?
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#37. In a non-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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#38. The best leaders have one type of leadership style and stick to it consistently
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#39. How is the 'Current Ratio' (which is sometimes also called Working Capital Ratio) calculated?
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#40. 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:
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#41. Your firm is acting for a client and has instructed a translator to translate a document which needs to be produced in Court.
When including the cost of the translator in your bill of costs, you treat it as a:
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#42. You must obtain physical copies of client account bank statements.
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#43. 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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#44. 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?
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#45. 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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#46. 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?
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#47. You've pursued a bad debt through the court. The court has awarded you costs and interest. Do you:
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#48. When does the Accountants Report (AR1) need to be sent to the SRA?
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#49. 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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#50. 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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