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Review Your SQE 1 Practice Records

Examination Timing: 00H00M03S

Emily, a solicitor, is about to assume the role of Compliance Officer for Finance and Administration (COFA) at her firm. She wants to ensure that the firm complies with the requirements for bank reconciliation. What are the firm's obligations with respect to bank reconciliation?

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Your selected option: A

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Firms are required to obtain bank statements for all firm bank accounts, including both client and business accounts, at least every five weeks. These statements must be reconciled against internal accounting records, specifically the balances and running totals on the client ledgers and cash book, to identify and resolve any discrepancies. The primary purpose of bank reconciliation is to ensure the accuracy of records regarding the amount of client money the firm is holding. Options A and B are incorrect as they refer to incorrect time periods and focus on profit costs and annual reports rather than client money. Options D and E are incorrect as they refer to more frequent reconciliation than required by the Rules. 

Key Point: The SRA Accounts Rules mandate regular bank reconciliation for all firm bank accounts at least every five weeks to ensure accuracy and protect client money.

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