Solicitors accounts Flashcards

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1
Q

When should accountants report any serious breaches

A

Immediately

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2
Q

Firms and solicitors must report any serious breaches of the accounts rules when

A

Promptly

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3
Q

Firms must obtain bank statements how often

A

5 weekly

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4
Q

Firms must conduct reconciliations how often

A

5 weekly

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5
Q

First must obtain an Accountant reports when

A

Within 6 months of the end of the accounting period

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6
Q

If a qualified accounts report is delivered when should it be provided to the SRA

A

Within 6 months of the end of the accounting period

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7
Q

How long is an accounting period usually for

A

12 months

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8
Q

How long should firms retain and store accounting records

A

6 years

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9
Q

Firms must keep accurate contemporaneous and chronological accounting records for what

A

Client ledgers
Cash sheet
Profit costs
Transfers

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10
Q

Client ledgers need to be identifiable what should it include

A

Clients name and matter

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11
Q

What records payments into and out of the firms bank accounts

A

Cash sheet

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12
Q

What is the primary purpose of the accounts rules

A

To keep client money safe

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13
Q

Debit and credit entries must always balance each other out what does that mean

A

They should both be either in the client account columns or both be in the business account columns

One will always be a credit the other a debit

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14
Q

Where should client money be paid into

A

The client bank account

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15
Q

What happens if client money is paid into the business account - what’s the exception

A

It is a breach and must be immediately rectified

unless it’s a mixed of client and business money and client money must be promptly allocated

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16
Q

What are four categories of client money

A
  1. Money held on behalf of clients
  2. Money held of 3rd parties
  3. Sols having a specified role
  4. POA & disbursements
17
Q

3 ways client money can be withheld

A
  1. Agreement in writing
  2. LAA payments
  3. Held by sol as a trustee
18
Q

All firms should have what officer

A

COFA - compliance officer for finance and administration

19
Q

Do COFAs have to be legally qualified

A

No

20
Q

When can client money be withdrawn

A

If sufficient funds are held

21
Q

Should client money always be available in demand

A

Yes

22
Q

When should sols correct breaches of the rules

A

Promptly

23
Q

If a breach involves client money being withdrawn or withheld should be rectified when

A

Immediately