THE UNIVERSITY OF HONG KONG FACULTY OF LAW Postgraduate Certificate in Laws Examination Exam: Solicitors’ Accounts 100% A+

THE UNIVERSITY OF HONG KONG FACULTY OF LAW Postgraduate Certificate in Laws Examination Exam: Solicitors’ Accounts Date: 20 February 2016 Time: 9:30 a.m. – 10:45 a.m. This is an open book examination. You may bring to the examination any printed/written materials. This examination comprises two questions and you are required to ANSWER BOTH QUESTIONS in the answer booklets provided. If you need further space, you should use the supplementary sheets provided. The supplementary sheets must be attached to the respective answer booklets. You are permitted to use calculators. Please note that only calculators approved by the Examinations Secretary or the Chief Examiner can be used in this examination. It is your responsibility to ensure that your calculator operates satisfactorily, and you must record the name and type of the calculator used on the front page of the examination script. This question paper must be handed in together with the answer booklets. This paper carries 12% of the overall marks in Professional Practice and Management. This study source was downloaded by from CourseH on :30:10 GMT -06:00 This study resource was shared via CourseH Page 2 of 4 Question 1 (4 marks, 1 mark per part) The following questions require short answers only. Answer in 1-2 sentences only. Each part is worth one mark. a. The Solicitors’ Accounts Rules (Rules) require the client account to be reconciled at least once a calendar month. The reconciliation must be done to comply with the Rules. Why, other than for compliance, is this procedure useful for the law firm to perform? b. Solicitors, when requesting funds for the completion of a property purchase, often ask clients to provide them with a cashier’s order. Why would a solicitor request a cashier’s order? c. Two assets on the balance sheet of a law firm are debtors and work in progress. Why is it important for a law firm to manage these two assets? d. Define what is meant by the internal control technique of “segregation of duties”. Describe how this technique can be implemented in a law firm to ensure that the withdrawal of client money is handled appropriately. Question 2 (8 Marks as allocated) Assume you are a solicitor with Keith Tse & Co. Advise how you would handle the following three unrelated transaction scenarios in light of your knowledge of the Solicitors’ Accounts Rules (Rules). Cite a Rule, wherever possible, to support your handling of the transaction. 1. Scenario Background: You have been retained by a new client for a personal injury matter. While explaining your terms of engagement to your client you asked the client to provide you with a retainer for future fees and disbursements of $75,000. Transaction: Today you learn that the $75,000 has been direct credited to your client account. (1 marks) This study source was downloaded by from CourseH on :30:10 GMT -06:00 This study resource was shared via Co