Learn How You Can Survive the Law Society Audit

Wow, what an amazing turnout on the eve of October 10th, 2019 at Wolf Law Chambers! We had Mark Dormer of Cosgrove give a very insightful presentation to our electric audience. It was a true success, so much so that we are hosting another in depth presentation on readying your practice for the Law Society audit in the early part of 2020. We host a variety of seminars, workshops and Continuing Professional Development (CPD) initiatives but the Law Society audit is one that touches base with all legal professionals. We have all gone through an audit by the Law Society or will be going through one in the near future. Instead of leaving things to the last moment and stressing yourself, the best approach is to ensure that you are complying with the outlined practice strategies for your area of practice from the beginning. This ensures that the proper processes for record keeping are already in place and excellent habits are developed. Thus, you will not only ‘survive’ the audit, you will thrive and excel in your legal practice.

Mark Dormer, owner and president of Cosgrove, possesses grassroots knowledge of law firm management and is able to transfer is effectively to legal professionals in all areas of practice. These techniques help improve profitability and guarantee that the fear of Law Society audits is alleviated. Marks Dormer suggests that in preparation for the audit, legal professionals should:

  • Develop processes for record keeping procedures that are compliant
  • Maintain those systems
  • Maintain up to date records
  • Be proactive

Instead of panicking and scrambling things last minute, doing the above will most definitely yield the right results for you. The keys for a successful audit and practice management established by Mark Dormer are financial and client record keeping.

For financial record keeping:

  • Record method of receipt for trust and general transactions (cheque, wire, etc.)
  • Record method of payment for trust and general transactions
  • Prepare a Form 9A for electronic transfers out of trust
  • Maintain valuable property record
  • Maintain cash receipts book
  • Maintain Referral Fee Journal

For client record keeping:

  • The client’s full name.
  • The client’s business address and business telephone number, if applicable.
  • If the client is an individual, the client’s home address and home telephone number.
  • If the client is an organization, the organization’s incorporation or business identification number and the place of issue of its incorporation or business identification number, if applicable.
  • If the client is an individual, the client’s occupation or occupations.
  • If the client is an organization, other than a financial institution, public body or company that is not a private company, the general nature of the type of business or businesses or activity or activities engaged in by the client, where applicable.
  • If the client is an organization, the name, position and contact information for those individuals authorized to give instructions with respect to the matter for which the licensee is retained.
  • If the client is acting for or representing a third party beneficiary or a principal, information about the beneficiary or principal as applicable.
  • Verification of identity when receiving, paying or transferring funds.    

It is clear that a successful audit requires for a legal professional to execute proper record keeping techniques that are in compliance with the Law Society’s code of conduct. Building the right habits from the initial stages of your practice will establish processes that allow for you to manage your practice with the highest efficiency. It is very much possible that an auditor may note down a few areas of concern despite your aim for perfection but that is nothing to be worried about. The auditor is only trying to HELP YOU! Take note and consideration of their recommendations and speak openly to them about how you can improve.

For future seminars, workshops, and Continuing Professional Development (CPD) courses, you are welcome to visit Wolf Law Chambers at 90 Matheson Blvd. W, Suite 101, in the heart of Mississauga. We aim to provide a shared workspace for legal professionals to flourish by equipping them with the tools and resources they need to succeed.