Importance of a legal audit for firms
All firms require an audit to enhance their performance. However, the process may intimidate some firms, leading them to postpone its realization, potentially originating risks that could have been avoided if done otherwise.
The importance of carrying out a legal audit for firms lies on its purpose: to verify the legal compliance of diverse provisions, including clauses, regulations, contracts, and other obligations that must be fulfilled as a legal entity.
Benefits of carrying out a legal audit for firms:
The foremost aim of an audit is to efficientize a firm’s operations, and that its obligations are properly complied with. Some of the benefits that can be obtained are:
- A plan with both preventive and corrective measures.
- Continuous improvements in diverse businesses processes.
- The identification of business risks to avoid potential frauds or errors.
- Enhanced internal communication.
A group of accountants are responsible for carrying out the legal audit. By using diverse tools they can identify issues within the firm that can be anticipatedly corrected to ensure a successful performance. The audit could be considered a critical and systematic exam aimed at identifying problems or areas of opportunity to be improved.
To carry out a legal audit, the following steps should be followed:
- Identify the business profile and specific legal framework.
- Learn about partners, shareholders, management schemes, and business control.
- Revise ‘’security points’’ (financial and legal information).
After complying with the aforementioned steps, a final report must be elaborated in which audit findings, incidences, and measures to be implemented for the fulfillment of the obligations are mentioned. Detailed information about accounting is obtained as well.
The audit must be carried out every six months or once a year. However, in case of having administrative problems, the advice of a specialist company can be solicited.
In QuAdrans Law and Finance we provide firms with counseling and corporate audits. We also offer other corporate services you may require. Our law firm will provide you with an efficient follow-up of the audit process, in addition to plans aimed at improving your business’ performance.
