Legal legal audit of the company

The global goal of conducting a legal analysis of a business is to reduce the risks of claims from both counterparties and the company itself.

In general, the audit allows you to identify a number of the following risks:

• Imposing fines or going to court for non-fulfillment of contractual obligations.
• Refusal to fulfill the terms of the contract on the part of counterparties.
• Signing agreements with unscrupulous partners and suppliers of goods and services.
• Filing claims by public authorities – the Federal Tax Service, the Federal Antimonopoly Service – and, as a result, reducing the risks of sanctions against the company’s governing bodies.
• Making claims on the part of the company’s employees.

VALEN’s lawyers offer comprehensive audit services with verification of all necessary documents to minimize several possible risks. We also practice an individual approach involving the audit of individual business sectors, for example, personnel documentation or concluded contracts.

• Compliance of the company’s activities with the legislation.
• Verification of the degree of risk and possible sanctions by government agencies.
• Identification of potential losses and elimination of circumstances for their occurrence.
• Resolution of problematic issues related to the claim of counterparties, claims of tax authorities, courts or the FSSP.
• Audit of accounting and tax reporting.
• Analysis and evaluation of the company’s investment projects.

Often, a legal audit becomes relevant on the eve of the purchase of a business for the purpose of checking the existing risks of incurring larger and hidden costs than the amount indicated by the contract and the investment plan. The experience of VALEN’s specialists shows that a legal audit is always required before buying an organization or company already operating on the market. The lawyer must check the profitability and commercial condition of the enterprise, as well as the legal risks associated with lawsuits, disputes with employees and the existence of requirements from the tax authorities.

The current business requires close attention. The fact is that in the course of activity, the former director or accountant could have committed violations, for which the new head will be responsible. Their list is quite wide: from fire safety requirements to compliance with tax legislation.

A legal audit of the activities of a legal entity is often also ordered to assess potential risks before being checked by government agencies.

Stage 1. Preparation of an audit plan.

At this stage, experienced lawyers conduct active oral and written consultations with the client in order to draw up an action plan and outline the main tasks of the upcoming audit.

Stage 2. Study of the necessary documents.

At this stage, the goal of lawyers is to monitor all the processes taking place in the company, their correctness and compliance with the law. The documents can be provided to the specialist in electronic form or on paper. A lawyer can spend from several days to several weeks at this stage.

Stage 3. Summing up the audit results.

At the end, the specialist forms and provides a report with the results of the audit, which reflects the work carried out, violations identified and recommendations for correcting the situation.

The law does not set deadlines for the implementation of a legal audit. However, in fact, this period is no more than 2-3 months. The need to request additional documents, including from another country, may contribute to an increase in the verification period.