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).
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
Not correct
Correct == > If members disagree with a decision of the Disciplinary Committee (rather than the Investigation Committee) then cases might be referred to the Appeal Committee. Neither the Financial Reporting Council nor the Prudential Regulation Authority is relevant in this context.
Keith, a chartered accountant, has recently been the subject of a complaint by one of his clients, Alex Ltd.
The initial stage of ICAEW’s complaints and disciplinary procedure will involve trying to find a practical solution such as giving an explanation or providing information to solve the problem.
This stage of the process is referred to as?
Select ONE answer:
Consideration
Arbitration
Investigation
Conciliation
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 == > Conciliation means trying to find a practical solution to a problem and will always precede other measures such as investigation and disciplinary proceedings.
ICAEW’s Professional Standards department is responsible for implementing the ICAEW’s disciplinary procedures, including the handling of complaints against members.
The complaint against Bash and Co about an audit it has performed, which has just been brought to the Department’s attention, is already in the public domain.
It is so serious that it might affect the reputation of the accountancy profession in general.
In such circumstances, the department may refer the matter straight to?
Select ONE answer:
The FRC’s professional discipline team within its Conduct Division, running the Accountancy Scheme
The FRC’s professional oversight team within its Conduct Division
The FRC’s audit quality review team within its Conduct Division
The Financial Conduct Authority
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 1
Correct == > The Department may refer the matter straight to the professional discipline team at FRC under the Accountancy Scheme in these circumstances.
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