Legal Compliance Audit & Legal Advisory Services

Legal Compliance Audit & Legal Advisory Services

Safe and lawful enforcement audits are the tools required to run the company processes effectively and smoothly. Such audits enable the administration render creative, efficient and impeccable agreements possible. As well as staying sage and complacent, it is necessary for the optimal operation of the company.

 In the competitive world, it is important for a business to comply to all the major authorities to operate business hassle free and overcoming the competition. We harbor a huge prestigious client base belonging to different industrial sectors. It is important for a company to look into important spheres of the company and undertake measures for the growth of the company in the world diaspora.

A legal audit can be processed on periodic basis as a part of the compliance process going on or can be performed in connection with the specific event like financial auditing or in connection with a particular transaction like acquisitions and securities. The specified areas have specialized audits like; environmental law, estate planning/asset protection franchising compliance; and government contracts.

The functioning of the legal audit and the sample questionnaire are listed below:

Mechanics of a legal audit

• Preliminary Questionnaire: The auditing begins with handling over of comprehensive questionnaire to the company’s management to review and address before the actual process to be conducted by the attorneys legally.
• Initial Conference: A meeting is held between the audit counsel and the company’s appointed officers who are specialist in the chosen fields after compiling the necessary document as specified in the survey and specifying the key areas of concern. It is an information gathering meeting aim to acquaint the legal auditor with the most recent information and aspect of the company. With regard to this, it is the responsibility of the audit team to perform on site observation of the activities and operations undertaken by the company. The auditors supervise the financial statements of the company along with keeping an eye on the accounting firm.
• Implementation of Post-Audit Recommendation: After the issuance of the post audit evaluation report to the management, the entrepreneur can implement the recommendations of the report for improved functioning of the company’s operations. The company can set up “tickler system” for periodic reporting and deadlines and set time for next audit.

Risks of Not Complying

The failure of not getting your accounts audited by the concerned authority in power can lead to adverse impact on the company and the incorporators. The risk of non-compliance with rules and regulations includes:

• Inability to keep correct documents, accounts or combination of personal and company properties may allow external parties the leverage to establish an disparity in the system by exposing the hidden details, thereby eliminating the limited liability rights of a firm or LLC, or even lawsuits against co-owners.
• If you don’t have appropriate permits and licensing then it might result in fees, lawsuits and, in certain instances, even the government departments closing the shop.
• If one fail to comply with the rules and regulations may cause the company to suffer under federal law with agencies like SEC, EPA, EEOC and IRS
• Missing out on periodical reviews of personnel handbooks, employment applications, general employment policies could result in government and civil liability
• Failure of the directors of the company in maintaining the accurate records and minutes of its decision-making procedures, for an instance proving that directors are exercising informed judgement could subject the company, its board liability and its shareholders.
• Failure in keeping track of company’s requirement of reporting may render the company defaulter with lenders and investors.

The process of undertaking the legal audit is a complicated one but the risks associated with it is too high for a company to face. It is essential and beneficial to go for legal audit especially for an entrepreneur.

Complying with the rules and regulations, laws and recommended authorities of State, Federal and International level can help in preparing the base for best management and assessment of all the operations, activities, business plans and policies, strategies and goals for attaining the desired parameter of success.