Legal Audit Services

Ensuring compliance

Legal Audit Servcies

In Legal Audit we meet with companies, individual enterprises, partnerships, corporations, and other types of organizations to discuss strategic plans and objectives, review key documents and records, and analyze and identify current and their projected legal needs.

The legal audit also lays the groundwork for the establishment of an ongoing legal compliance and prevention program in order to ensure that the company’s goals, structure and ongoing operations are consistent with the latest developments in business and corporate law.

Finally, the legal audit helps managers identify the legal issues triggered by changes in strategies, goals or objectives and allows planning for the legal tasks that must be accomplished as a result of the issues identified.

Key issues that must be addressed include: choice and structure of the entity; recent acts of the board of directors and documentation (or lack thereof) relating to those decisions; protection of intellectual property; forms and methods of distribution and marketing; pending and threatened litigation; estate planning; insurance coverage; hiring and firing practices; employment agreements; securities law compliance; antitrust and related trade regulations; product liability and environmental law; and a review of sales and collection practices.

In general, we perform legal audits to reveal unknown business opportunities. We also carry out investigations and specialized audits in litigation, labour and employment, intellectual property, environmental, regulatory, corporate, estate planning/asset protection, government contracts etc.

We have carried out legal audit for Coast Development Authority (CDA)

Risks of Not Complying

The failure to have an independent legal audit performed by qualified legal counsel can have a significant adverse impact on the company and its founders. The risks of non-compliance with these many laws and regulations include:

Failure to keep proper books and records or mixing personal assets with business assets could lead to the ability by third parties to “pierce the corporate veil,” thereby removing the limited liability protection of a corporation or LLC, or even to litigation among co-owners.

Failure to obtain all proper permits and licenses could lead to fines, penalties, and, in some cases, even closure of the business by governmental agencies.

Failure to comply with certain laws and regulations may lead to problems under federal law with agencies such as the IRS, the EEOC, the EPA, and even the SEC.

Failure to have employment applications, personnel handbooks and general employment policies reviewed periodically could give rise to governmental and civil liability.

Failure by the directors of the company to keep accurate records and minutes of its decision-making procedures, such as proving that directors are exercising informed judgment, could subject the company and its board to liability to its shareholders and investors.

Failure to monitor the company’s reporting requirements may put the company into default with lenders or investors. The process of going through a legal audit isn’t easy, but the risks associated with avoiding the issue are too high for any company to bear. Doing so is not only necessary, but beneficial. It is the entrepreneurial company’s reality check.