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 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?
#2. 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?
#3. Which of the following are NOT taxable VAT rates? *
Select all that apply:
#4. Financial statements should be prepared in a format which is:
#5. On the day of an SRA AML visit the SRA will look at selected matters. How many files will they ask to review?
#6. I no longer need to consider time frames when transferring costs (fees and disbursements) to the business account?
#7. 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?
#8. If you change reporting accountants, do you need to notify the SRA of the change?
#9. 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
#10. A “qualified” accountant’s report means:
#11. 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?
#12. If a partnership extends its financial year end and the AR1 reporting deadline is also extended, do you need to provide details of the change to the SRA?
#13. 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?
#14. The best leaders have one type of leadership style and stick to it consistently
#15. Which of the following best describes a disbursement?
#16. Business “lock up” refers to:
#17. I no longer need to consider time frames when transferring costs (fees and disbursements) to the business account?
#18. If client money is legitimately retained for a specified reason, are you required to regularly update the client?
#19. 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?
#20. Double-entry bookkeeping refers to:
#21. What does MLRO stand for?
#22. When managing bulk disbursements (e.g. Land Registry or HMCTS), what is most important for efficiency?
#23. A ‘Recharge’ is:
#24. The MLRO will receive internal suspicious activity reports and then make their report, if necessary, to:
#25. Which document is generally required to reclaim VAT?
#26. 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:
#27. The SRA Accounts Rules require a business/office account to be reconciled?
#28. To be valid for VAT purposes a credit note must be issued within:
#29. Team members should be provided with feedback:
#30. You receive an invoice from an overseas supplier for £100 (without VAT) but you would have been charged £20.00 VAT if you’d used a UK supplier.
What figures would you need to put on your VAT return and in what boxes would you put them?
#31. Which 2 options below are most likely to be reasons for deciding if a breach is serious?
Select all that apply:
