spot audit assistance

Red flags you need to know that could trigger The Law Society audit including: identification of inadequacies during a previous spot audit; newly formed law firms to ensure appropriate record-keeping practices; failure to file the Lawyer Annual Report (LAR); non-compliance with the Law Society's record-keeping provisions or Rules of Professional Conduct and so on. (https://lso.ca/lawyers/about-your-licence/spot-audit).

Our goal is to maintain your financial records in accordance with By-Law 9.

  • Pre-audit: To rectify any minor errors in your record-keeping practices prior to the auditor’s visit and prepare the reports for audit use in accordance with the requirements of By-Law 9
  • Site-audit: To appoint the dedicated bookkeeper to assist you during the audit process
  • After-audit: To help you review the Audit Report with Members and correct the deficiencies identified in the report to the society’s satisfaction

Resources

Spot Audit supports and promotes high quality law firm record keeping by answering questions and providing guidance regarding private mortgages, trust and general record keeping requirements, and By-Law 9 and providing onsite support and ensuring compliance with LSO requirements by conducting audits.(https://www.lso.ca/lawyers/about-your-licence/spot-audit)

The Spot Audit Program

Designed as a pro-active compliance measurement and problem detection tool, measure the integrity of law firm financial filing (By-Law 8), assess ongoing compliance with financial record-keeping requirements (By-Law 9) and the Rules of Professional Conduct, and identify serious misconduct related to financial matters. 

Preparing for a Spot Audit – From LSO

Initial Spot Audit Notice
The auditor will fax or e-mail to you a list of books and records the LSO is looking for.

Maintaining Financial Records
Ensure that a paper copy of all financial records, whether entered and posted by mechanical or electronic means, can be produced promptly upon the Law Society of Ontario’s request. Section 21 of LSO By-Law 9.

Current Financial Records
Ensure your financial records required to be maintained under Sections 18 & 19 of LSO By-Law 9 are entered and posted current at all times : Subsection 22(1) of LSO By-Law 9.

Completeness of Financial Records
You must include the full particulars as required by the subsections of the LSO By-Law. Each record should indicate which record it is and include your firm name.

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