AAT L2 Work Effectively in Finance 3

Question 1

Which of the following is an internal stakeholder of a business?

Accepted Answer

An employee of the business

Answer

Internal stakeholders are people within the organisation, such as employees, managers, and directors. External stakeholders include HMRC, banks, customers, suppliers, and shareholders (though shareholders can be considered internal in some classifications).

Question 2

The ethical principle of objectivity requires a finance professional to:

Accepted Answer

Not allow bias, conflict of interest, or undue influence to override professional judgement

Answer

Objectivity means a finance professional must exercise independent judgement without bias. They should not let personal relationships, financial interests, or pressure from others compromise the accuracy and fairness of their work.

Question 3

Which of the following documents would a new employee in a finance team be expected to read and understand?

Accepted Answer

The company's policies on data protection, anti-money laundering, and health and safety

Answer

New finance employees should familiarise themselves with key policies including data protection (handling of personal data), anti-money laundering procedures (recognising and reporting suspicious activities), health and safety, and the organisation's code of conduct.

Question 4

Money laundering is best described as:

Accepted Answer

The process of making money obtained from criminal activity appear legitimate

Answer

Money laundering is the criminal process of disguising the illegal origin of money obtained through criminal activities, making it appear to come from legitimate sources. All finance professionals have a legal duty to report suspected money laundering.

Question 5

If a finance professional suspects money laundering, they must:

Accepted Answer

Report it to the Money Laundering Reporting Officer (MLRO) or the National Crime Agency (NCA)

Answer

Under the Proceeds of Crime Act 2002 and Money Laundering Regulations, finance professionals must report suspicions to their organisation's MLRO or directly to the NCA. Failing to report (or tipping off the suspect) is itself a criminal offence.

AAT Level 2 Practice Test

AAT Level 2 Practice Test

AAT L2 Work Effectively in Finance 3