It is necessary for businesses to conduct a legal business audit periodically in order to determine any existing legal problems. An audit should be done by an attorney so that attorney-client privilege applies and the results of the audit cannot be used against the company in legal proceedings.
A legal business audit will review the company’s documents, practices, and activities to determine any legal issues that may arise in the future and potentially lead to lawsuits, the interruption of the business, or criminal penalties. The audit should also show the company how to correct these issues.
An audit may also reveal unknown business opportunities, such as the discovery of unprotected intellectual property.
The legal business audit may include a review of the following areas: Corporate Records, Company Stock, Contracts, Federal and State Filings, Protection of Intellectual Property, Insurance, Employment forms and policies, and the Compliance of the company’s website in accordance with Florida State Law.
The complexity of the audit is unique to each company depending on factors such as the industry of the company, the number of employees and shareholders the company has, and where the company is in its growth objectives.
Sources: CorpLaw ; Bullivant
