Improper handling of a trust account can lead to an ethics violation, and many states conduct random audits. While some trust accounting issues are the result of a deliberate misuse of funds, many others are mistakes that result from poor record keeping or not understanding the regulations surrounding a trust account’s use. Some of the most common issues are discrepancies … Read More
What happens during an audit of trust accounts?
The possibility of being selected for a random trust account audit can be stressful, but understanding how the process works can alleviate some of the anxiety. Receiving notice. Typically, notices for audits are mailed, and the amount of notice given varies by state. In New Jersey for example, audit notices normally arrive ten days to two weeks before the scheduled … Read More
How can my law firm prepare for a trust account audit?
Should your firm undergo an audit of its trust accounts, it’s likely to make you a little nervous even if your documents are meticulous. Given that improper handling of a trust account can lead to an ethics violation, audits can be stressful even under the best of circumstances. This means you want to make sure your records are audit-ready at … Read More