Sunday, July 15, 2012
At the end of the audit, you will be given an audit report, itemizing any issues that need your attention. Seventy percent of audits uncover only minor issues, which the auditor will discuss with you. You must take steps to correct your bookkeeping practices as per the auditor’s instructions.
The auditor can return a few months later to check on your progress, and failing to correct your bookkeeping practices can have dire consequences.
If more serious problems are found, the auditor can immediately issue a compliance order and you may be prevented from using your trust account. The compliance order will direct you to correct deficiencies and impose a short deadline for the work to be completed.
If you fail to comply with the auditor’s instructions, your file can be turned over to the LSUC’s Discipline Committee. You are still given every opportunity to correct deficiencies, and can avoid a full hearing if you can satisfy the investigator that you have brought you records up to LSUC standards.
If you still do not correct your bookkeeping, you can ultimately be disbarred by the LSUC.
As always, I invite your comments and suggestions for future post topics. Next Week - LSUC Audits and Accounting Programs Like PCLaw.