Compliance Flashcards
What is the main goal of the SRA Accounts Rules?
To keep client money safe.
When does a firm need an accountant’s report?
When they have held or received client money, or operated certain client accounts.
When is a firm not required to get an accountant’s report?
If all client money is from the Legal Aid Agency, or if the total client account balance is below certain limits.
What does the accountant check in their report?
The accountant checks the firm’s compliance with the SRA Accounts Rules.
When must a qualified report go to the SRA?
Within six months of the accounting period end.
What’s a “Serious factor” in a report?
A problem that likely puts client money at risk, leading to a qualified report.
Examples include:
● Significant shortfalls in client accounts.
● Billing for un-incurred fees.
● Disregard for client money safety.
● Suspected fraud.
● Poor record-keeping.
● Failure to cooperate with the accountant.
Who’s responsible for sending the report to the SRA?
The firm and its managers.
How long must firms keep accounting records?
At least six years.
What are some examples of “accounting records”?
Bank statements, reconciliations, accountant’s reports, and electronic records.
When might an accountant be disqualified from doing the report?
If they have a history of professional misconduct or lack due care and skill.
