Mandatory Competencies

Question 1

What is the difference between a balance sheet and a profit and loss statement?

Answer 1

A balance sheet is a statement of financial position showing a business’s assets and liabilities at a given date whereas; a profit & loss is an income statement showing summary of a business’s income and expenditure

Question 2

What do public limited companies accounts include?

Answer 2

• chairman’s statement
• independent auditors report
• profit & loss (income statement)
• balance sheet (statement of financial position)
• corporate governance report
• remuneration report
• other statutory information

Question 3

What is a cash flow?

Answer 3

A cash flow is prepared for management purposes showing all receipts and expenditure including VAT

Question 4

What is the difference between management and audited accounts?

Answer 4

Management accounts are for internal purposes whereas audited accounts are prepared by a certified or chartered accountant

Question 5

What is an asset?

Answer 5

cash, property or other investment

Question 6

What is a liability?

Answer 6

Borrowings, loans, overdrafts

Question 7

How do you business plan at your company?

Answer 7

We have departmental and general office meetings every month to discuss ongoing work, recent instructions and opportunities for cross selling or expansion

Question 8

How do you fee forecast?

Answer 8

We have a client relationship management system that keeps a record of ongoing instructions including anticipated fees. each individual surveyor inputs an estimated fee based on the nature of the instruction. As a company we are then able to pull off a record of each individuals ongoing case load and anticipated fees.

Question 9

Give and example of how you have worked in a team? What was your role within that team?

Answer 9

At my company we have departmental meetings every month to discuss ongoing workload. This provides an opportunity to discuss ‘problem cases’ and we work in a team to discuss strategies that will help to move cases forward. My role within the team is to prepare a spreadsheet with a list of all ongoing cases, including up to date notes on their progress and current position, I do this by transferring the date form our client relationship management system in preparation for our meeting.

Question 10

What does the Data Protection Act 1998 do?

Answer 10

Gives individuals the right to know what information is held about them and provides a framework to ensure that personal information is handled properly.

Question 11

What are the eight principles of the Data Protection Act 1998?

Answer 11

• data must be fairly and lawfully processed
• processed only for the relevant purposes
• adequate, relevant and not excessive in relation to the purpose for which its held
• accurate and up to date
• not kept longer than necessary
• processed in line with the data subjects rights
• kept securely
• not transferred to countries that do not haves similar data protection laws to the UK

Question 12

Who is the Data Protection Act 1998 policed by?

Answer 12

• information commissioners office (ICO)
• the penalty is a fine

*if you take a photo of a person - for example photo of a property for marketing purposes the photo should be held in accordance with the data protection act 1998 and the person should be informed and express consent given

Question 13

What does the Freedom of Information Act 2000 do?

Answer 13

gives individuals the right to access information held by public bodies. The public body must tell an individual requesting sight of information whether it holds it and if it does the public body is required to supply it in 20 working days in the format requested. It can charge for the provision of information.

Question 14

Are there any exemptions to the freedom of information act 2000?

Answer 14

Yes. if it is contrary to Data Protection Act 1998 requirements. If it would prejudice a criminal matter under investigation or if it would prejudice a persons or organisations commercial interests.

Question 15

How do you ensure security of data at your company?

Answer 15

Password protect documents, make sure information is held on a paper file along with an electronic file, paper files locked away in a secure filing cabinet, virus protection, information is held on the Cloud

Question 16

What are the key financial statements that all companies must provide?

Answer 16

Profit & loss account, balance sheet & cash flow

Question 17

Why do surveyors need to understand and be able to interpret company accounts?

Answer 17

• for your own business accounts
• for assessing the covenant strength of potential landlords and tenants
• for assessing financial strengths of contractors and those tendering for contracts
• for profits method valuations

Question 18

When have you used company accounts in your work? and when might you use them in the future?

Answer 18

I have used company accounts when assessing claims for loss of business. I may use company accounts for profits method valuation.

Question 19

How do you feel your role contributes to the achievement of your organizations objectives?

Answer 19

Company’s objectives are to generate an income and make a profit. I am involved in business planning including the setting of individual targets. I understand my companies growth strategy and the sectors they wish to expand in. I promote these aspects of our business where applicable whilst dealing with clients.

Question 20

How do you think an up to date business plan can help an organisation in the current economic climate?

Answer 20

Helps a business to identify key priorities, areas to grow the business, target new clients, allows business to budget appropriately and helps to set appropriate targets for staff