Part A – Multiple Choice Questions
Assessor to complete shaded areas:
When an agent receives trust funds, in what order is the money recorded:
If a cheque is received that comprises both “trust monies” and “non-trust monies” the licensee must take the following action:
Trust money held on behalf of a person is available to:
True or False:
All cancelled receipts and cheques must be recorded in the cash book and ledger.
Assessor to complete shaded areas
The licensee must ensure that a backup copy of all computerised records:
Within 21 days after the end of each month the licensee must:
The licensee must ensure that if a computer system is used to retain trust records that:
Trust Monies must be banked:
Trust Records must be kept:
What date is the prescribed day for external auditing trust accounts?
Assessor to complete shaded areas
Licensees must ensure that they:
A trust account receipt issued in respect of moneys received must show the following information (in addition to other information):
Within what period of time must a licensee notify the OFT in writing after becoming aware that the Trust Account has been overdrawn?
To which Government department does a licensee now have to report details of unclaimed trust money?
Who must agents notify in writing that a trust account is being opened?
Assessor to complete shaded areas
Who is qualified to audit a trust account?
What is the purpose of a bank reconciliation?
When must a bank reconciliation be completed?
Identify where the words “Trust Account” must appear.
What is the legislative requirement for closing a trust account?
When completing a bank reconciliation, if the bank statement is correct but the agency cashbook has errors, where do you make the adjustment?
Assessor to complete shaded areas:
The money placed into an agency’s trust account can be used:
Circle the three (3) key features of the relationship between an agency and the principal (client)
True or False:
True or False:
True or False:
True or False:
True or False:
Circle the three (3) reasons why a source document is important?
Part B – Written Answer Questions
As part of your assessment of this unit of competency you are required to complete the following written answer questions
Participant Instructions:
Assessor to complete shaded areas
In the Property and Stock Agents Act 2002 are the following 2 phrases that relate to Trust money. Explain each briefly in your own words:
In the Real Estate sector, what are two main objectives for having Trust Accounts?
Assessor to complete shaded areas
When a purchaser requests the sales deposit to be invested, what special purpose Trust Account will the amount be deposited in?
Name five (5) sources of trust money?
For Real Estate Agents in NSW, what Regulation gives stipulations of Trust Account management?
A Licensee that fails to notify the Director-General in writing of a Trust Account becoming overdrawn along with the required details can be penalised for what amount?
How will a Licensee be affected when breaches of the legislation involving Trust Accounting occur in their office?
How will a Client’s trust and confidence in the agency be affected when breaches of the legislation involving Trust Accounting occur?
Assessor to complete shaded areas
If a Licensee uses a computerised system for their Trust Accounting, it must have certain characteristics. List five (5) features and aspects that the software package must have:
What is an agency’s objective for its risk management policy and procedure for Trust Accounting auditing controls?
A Licensee who has authority otherwise than as a delegate to sign trust cheques or effect trust EFTs may delegate that authority to who and how many for the following situations?
Describe the purpose and use of a cash book.
Assessor to complete shaded areas
Describe the purpose and use of ledgers.
Can a Trust Account ledger have a balance of less than zero? (circle answer and explain): Yes / No Why?
Trust Account money received must be banked in what format and why?
What seven (7) aspects must be clearly noted on a Trust Account receipt for an amount of money received from a client.
How can a Licensee provide adequate protection for a client’s privacy and confidentiality regarding the client’s funds held in trust?
Assessor to complete shaded areas
What is a qualified audit report?
What must a Licensee and the auditor do with a completed qualified audit report?
Auditor:
Licensee:
What procedures for monitoring records and ensuring the security of trust account records can be implemented?
List four (4) ways that a Licensee can reduce inaccuracies and fraud when operating a Trust Account.
Assessor to complete shaded areas
In what circumstances would you seek other professional input on an agency problem.
Part C – Case Study
Your business owner, Martin, has decided to expand his business and has bought an office in a nearby suburb. Martin has appointed one of the existing staff, Bob Roberts, to be licensee-in charge and Maria, the admin assistant to look after the admin of the new office. Peter Livingstone has been appointed as the Property Manager. The Agency has received the following five Trust Account transactions during the month of November:
Purpose Home Care
Determine which agency staff member/s as part of their job role and responsibilities, would be executing the above-mentioned transactions at the various stages? Note down applicable person responsible per process stage.
Assessor to complete shaded are
Receipt:
Banking:
Opening an IBD Account:
Recording of Trust Account transactions:
Receipt:
Banking:
Recording of Trust Account transactions:
Receipt:
Banking:
Recording of Trust Account transactions
Receipt
Banking
Recording of Trust Account transactions:
Raising request for payment with supporting invoice:
Request goes to:
Approval signed off by:
Payment made by either of two people:
Recording of Trust Account transactions:
Part D – Project / Assignment: Understanding Monthly Trial Balance, Cashbook reconciliation and Bank reconciliation
Assessor to complete shaded areas:
Identify Source Documents
From a list, identify if it could be classed as Source documents. Circle those items that are Source documents.
When should this be done by?
Who should complete this report?
Explain how this figure is achieved B) What records are used?
What does it represent?
Assessor to complete shaded areas:
Cashbook Reconciliation
When should this be done?
Who should complete this report?
Why do we prepare this report?
What does it show?
Bank Reconciliation
When should this be done?
Who should prepare this report?
Why do we prepare this report?
What does it show?
Overview
What is the link between the Cashbook and Bank reconciliation?
How are all these 3 reports linked?
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