Compliance that enables, not blocks you.
We give you expert advice to so you can respond effectively to a compliance audit.
A Compliance Audit
Some state regulators have the ability to conduct an audit of your practice to assess your compliance with the relevant legislation, rules and professional obligations. In the Uniform Law jurisdictions, this function is conducted under Part 4.6. Many lawyers are unaware of what this involves or what the ramifications might be, so you need advice to prepare and respond effectively. How you respond can significantly influence whether the matter resolves with some practice improvements or escalates further. That's where we come in. Our independent advice gives you a steady, experienced voice focused solely on protecting your interests. We will help you understand the issues and respond in the most effective way possible, assisting with submissions and corrective steps.
The Steps:
Responding to a Compliance Audit
We'll work out where you're at and what we need to do.
We'll provide you with a proposed plan of action and estimated costs for our legal advice.
The way you prepare and respond for the audit can significantly influence the trajectory of the matter. Understanding the purpose of the audit and your obligations can help you prepare and can materially affect outcomes.
Benefits from our advice:
A Compliance Audit
- We provide non-judgemental support with calm, confidential guidance during a high-stress period
- We give you clear information about what the auditors usually look for so you can be prepared
- We give you clarity about your level of exposure
- We give you the information you need to make strategic decisions
- We give you an action plan for remedying any non-compliant practices ASAP
- A measured, experienced approach can reduce stress, limit the time involved and mitigate outcomes.
FAQs
These are the common questions from lawyers in a similar situation to you, ask us:
A Compliance Audit by your state regulator (such as the Legal Services Board in Victoria) means concerns have been raised about your compliance with professional obligations, whether it be from a complaint, an External Examiner's report or by other means. It usually means the regulator is concerned that there may be a systemic problem with compliance in areas like trust account procedures, costs disclosure, supervision, record-keeping or conduct issues. In the case of non-Uniform Law jurisdictions, some regulators can conduct audits without requiring prior reasonable grounds. This is a formal investigation and can have serious consequences. How you respond now can significantly influence whether the matter resolves with practice improvements or escalates further.
That depends on the scope and nature of the concerns. Some audits are routine or compliance-focused. Others arise from complaints or suspected systemic breaches. While many investigations resolve without formal disciplinary action, regulators have broad powers — and matters can escalate if risks are identified. Taking the process seriously from the outset is critical.
Generally, yes. The auditor usually has statutory powers to compel production of documents and require information. However, that does not mean you should respond informally or without advice. Understanding the scope of what is required — and how to present material accurately — can materially affect the direction of the investigation.
Sometimes, yes. If the auditor forms the view that there is evidence of unsatisfactory professional conduct or professional misconduct, the matter may be escalated to the Commissioner for a disciplinary investigation and if proved, a prosecution or determination. Early strategic engagement can sometimes prevent unnecessary escalation.
It depends on whether a possible negligence claim might arise as part of the pattern of issues the subject of the investigation. In most cases there will not be any overlap. Your PII generally does not cover your legal costs in dealing with a compliance audit.
Investigations themselves are confidential. However, if the matter results in a disciplinary investigation that then progresses to formal disciplinary proceedings, those hearings and decisions are typically public. Managing the matter carefully at the investigation stage can reduce the risk of public exposure later.
Outcomes vary depending on the findings. They may include: Recommendations for changes in management systems; Management System Directions; Referral to the Commissioner or other body responsible for investigating disciplinary allegations, and if an investigation is commenced, the usual outcomes of those investigations. Understanding the range of possible outcomes helps you assess risk and plan appropriately.
Seek independent legal advice from someone experienced in regulatory matters (that's us!). Ensure your registers are up to date. Assess your record keeping and the state of your office (if you are happy to have an in-person visit from the auditor - to which you don't have to agree!). Consider recent complaints and review the issues if you have not already been informed of the reason your practice has been selected for an audit.
No - in fact the auditor should not be asking you anything about a current complaint or seeking any material in relation to the complaint.
A Compliance Audit by your state regulator (such as the Legal Services Board in Victoria) means concerns have been raised about your compliance with professional obligations, whether it be from a complaint, an External Examiner's report or by other means. It usually means the regulator is concerned that there may be a systemic problem with compliance in areas like trust account procedures, costs disclosure, supervision, record-keeping or conduct issues. In the case of non-Uniform Law jurisdictions, some regulators can conduct audits without requiring prior reasonable grounds. This is a formal investigation and can have serious consequences. How you respond now can significantly influence whether the matter resolves with practice improvements or escalates further.
That depends on the scope and nature of the concerns. Some audits are routine or compliance-focused. Others arise from complaints or suspected systemic breaches. While many investigations resolve without formal disciplinary action, regulators have broad powers — and matters can escalate if risks are identified. Taking the process seriously from the outset is critical.
Generally, yes. The auditor usually has statutory powers to compel production of documents and require information. However, that does not mean you should respond informally or without advice. Understanding the scope of what is required — and how to present material accurately — can materially affect the direction of the investigation.
Sometimes, yes. If the auditor forms the view that there is evidence of unsatisfactory professional conduct or professional misconduct, the matter may be escalated to the Commissioner for a disciplinary investigation and if proved, a prosecution or determination. Early strategic engagement can sometimes prevent unnecessary escalation.
It depends on whether a possible negligence claim might arise as part of the pattern of issues the subject of the investigation. In most cases there will not be any overlap. Your PII generally does not cover your legal costs in dealing with a compliance audit.
Investigations themselves are confidential. However, if the matter results in a disciplinary investigation that then progresses to formal disciplinary proceedings, those hearings and decisions are typically public. Managing the matter carefully at the investigation stage can reduce the risk of public exposure later.
Outcomes vary depending on the findings. They may include: Recommendations for changes in management systems; Management System Directions; Referral to the Commissioner or other body responsible for investigating disciplinary allegations, and if an investigation is commenced, the usual outcomes of those investigations. Understanding the range of possible outcomes helps you assess risk and plan appropriately.
Seek independent legal advice from someone experienced in regulatory matters (that's us!). Ensure your registers are up to date. Assess your record keeping and the state of your office (if you are happy to have an in-person visit from the auditor - to which you don't have to agree!). Consider recent complaints and review the issues if you have not already been informed of the reason your practice has been selected for an audit.
No - in fact the auditor should not be asking you anything about a current complaint or seeking any material in relation to the complaint.
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