Client Compliance and Risk Management Audit Checklist
Even the most meticulous law office can overlook a weak spot in compliance or risk management—and those blind spots can turn into major liabilities. This checklist helps you take a clear-eyed look at how well your firm is protecting client data, upholding professional standards, and managing risk. Whether it’s regulatory requirements or ethical obligations, now’s the time to make sure nothing’s slipping through the cracks.
✅ Regulatory Compliance#
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Confidentiality protocols are documented and consistently followed
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Staff are trained on privacy regulations (e.g., HIPAA if applicable, GDPR for international clients)
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Procedures are in place for handling client data securely, including electronic files and physical documents
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Retention and destruction policies for client records are current and followed
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The firm has conducted a recent data protection audit
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Vendors and contractors with access to client data are vetted and bound by confidentiality agreements
✅ Ethics and Professional Responsibility#
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Conflict checks are performed and documented for all new matters
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Billing practices align with ethical billing standards
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Clients receive clear, updated engagement letters outlining scope of services and responsibilities
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The firm has a clear policy for handling client complaints or grievances
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Attorneys are up to date with continuing legal education (CLE) requirements
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Marketing and advertising efforts are truthful and in compliance with applicable rules
✅ Risk Management#
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Professional liability insurance is active, appropriate for the firm’s size and scope, and reviewed annually
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The office has a designated point person for risk oversight
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Regular internal audits or file reviews are conducted to catch issues early
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Client communications are well-documented in writing and securely stored
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There is a formal incident response plan for data breaches or security threats
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Exit protocols are in place for departing attorneys or staff to ensure continued confidentiality
Tip: Don’t wait for a crisis to test your systems. A well-executed audit can help build trust with clients, reduce exposure, and keep your firm one step ahead of risk.