Legal audit is a legal diagnosis of a company’s activities, analysis of internal documentation, contracts and protection of personal data.
The goal of a legal audit is to identify weaknesses before they lead to serious problems and to provide the business owner with a clear understanding of the legal status of the company.
When is a statutory audit necessary?
Conducting a statutory audit is especially important in the following cases:
- Preparation for attracting an investor or selling a business
- Reorganization, merger or division of a company
- Change of management or owners
- Need to adapt to new legal requirements
- Preparation for an audit from the tax, labor inspection or other regulatory authorities
- Regulated – to ensure legal purity and stability of processes
What is checked during a statutory audit?
The scope of the audit depends on the specifics of the company, but usually includes:
- Constituent documents: statute, minutes, orders
- Contracts with counterparties: risk verification and unfavorable conditions
- Licenses and permits
- Personnel documentation and employment contracts
- Tax declarations and obligations
- Intellectual property
- Litigation and potential claims
- Compliance with personal data protection requirements and GDPR
Why does a business need a legal audit?
An audit helps not only to avoid problems, but also to strengthen the legal position of the business:
- Protection against fines and inspections
Early detection of violations allows you to avoid penalties and financial losses. - Safe contracts
An audit helps to detect and eliminate dangerous clauses in contracts. - Strengthening positions in disputes
A legally clean company feels confident in negotiations and in court. - Trust of partners and investors
Transparency and legal order are a significant advantage for the business. - Trust of the owner
Understanding that everything is in order allows you to focus on development.
How we conduct an audit at the LegalService BAA law firm
We approach each task individually and confidentially. Stages of work:
- Study of the business and setting tasks
- Collection and analysis of documentation
- Identification of violations and vulnerabilities
- Recommendations for eliminating deficiencies
- Legal assistance in the correction process
You can order an audit as a single service or as part of a subscription-based legal service.
