BUAW-Lesson 5 Chapters 8 & 9

Charlie, an AAT licensed member, has been carrying out accountancy work for his client YLM Ltd for a number of years. YLM Ltd are a painting and decorating firm. They have approached Charlie and asked him to hold £500,000 for them as they are planning to open a new casino in the local town. What should Charlie do next?

• 
  Charlie should make sufficient enquiries to ensure that the cash is not the proceeds of any criminal activity before accepting it

• Charlie should accept the cash from YLM Ltd but ensure that she deposits it into the client's bank account immediately

• Report YLM Ltd to the National Crime Agency on suspicion of money laundering

An individual found guilty of money laundering can face ​ ​ (a)   fine or a prison sentence of up to ​ ​ (b)   . The maximum penalty for failure to report is ​ (c)   imprisonment and/or a fine.​

• an unlimited
• £1,000
• £10,000
• 14 years
• 5 years
• 6 months
• 12months
• 2 years
• 7 years

Reggie, an AAT licensed member, has just completed some accounting work for Edwina. His fees for the work are £3,800. Edwina arrives at Reggie's office with £3,800 in cash. Which of the following is the most appropriate action for Reggie to take?

• Report Edwina to the National Crime Agency on suspicion of money laundering

• Accept the cash from Edwina but ensure he puts it into his bank account immediately

• Make sufficient enquiries to ensure that the cash is not the proceeds of any criminal activity before accepting it

​ (a)   disclosure is made by the money launderer whereas ​ ​ (b)   disclosure is made by someone who knows or suspects another of money laundering.

• Authorised
• Protected
• Nonauthorised
• Unprotected

Noah is an AAT professional member employed by Flemings PLC in their accounts department. He has recently discovered that the Commercial Manager has been paying substantial sums of money to senior officials in order to win a tender for a big construction contract. They were paid to ensure that Flemings PLC win the tender for the construction contract. Noah has raised this with the Finance Director who is the highest line of reporting through Fleming's internal procedures. The Finance Director doesn't feel it is an issue, and tells Noah to ignore it, as without the contract there won't be enough money to pay the employees next month. Noah believes that the manager is bribing the senior officials in order to win the contract. As this is illegal he wishes to make a protected disclosure, however, he doesn't want to lose his job. Will Noah be protected by the Public Interest Disclosure Act (1998)?

• Noah will not be protected as he has not told his manager first.

• Noah will be protected provided he acts in good faith.

• Noah will not be protected as this is not a qualifying disclosure.

Identify which of these are features of cloud accounting.

• The business hosts all data on its own servers.

• It relies on the availability of the internet to its users.

• Improved sustainability, as documents are stored electronically.

• A backup must be run regularly and stored off site.

• Cloud accounting software relies on internet access.

​ (a)   is installed on a computer system to provide real-time protection against cyberattacks. ​ (b)   translates data into another form or code that only authorised users, with the necessary password, can read.

• Data analytics
• Blockchain
• Anti-virus software
• Data encryption
• Machine learning
• Artificial intelligence

Jeyne’s Ltd is a large retail organisation. It uses data analytics to record its sales information and produce monthly sales reports. It then uses this information to produce futures forecasts on which to base its budgets. Identify which two categories of data analytics Jeynes Ltd is using.

• Descriptive

• Diagnostic

• Predictive

• Prescriptive