Lucy recently established her own accountancy practice from small retail premises in Staffordshire, above a local newsagents.
For the time being Lucy will operate as a sole trader.
Lucy has just passed the last of her professional examinations for her institute, but she is not yet qualified to offer statutory audit, insolvency, investment business or probate services.
Lucy through networking has already been successful in attracting several clients to her new practice.
She has not yet become a member of one of the Consultative Committee of Accountancy Bodies (CCAB), but she is registered with an approved body for supervision under the money laundering regulations (AML).
As a result, which of the following statements is correct?
Select ONE answer:
- Lucy cannot call herself an accountant
- The CCAB can legally stop Lucy from practising
- Lucy can offer the full range of accountancy services
- Lucy can offer the full range of accountancy services except in the reserved areas
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct
- Not correct
- Not correct
- Correct == > The term ‘accountant’ has no special position in law (1). There is no legal requirement for an accountant to be a paid-up member of the CCAB bodies (2). She can call herself an accountant and, because she is registered for supervision under the money laundering regulations, Lucy can offer all accountancy services except in the reserved areas, where specific levels of competence are demanded (3).
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