File audits or file reviews—the basics


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Practice Compliance expert
Practice notes

File audits or file reviews—the basics


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Practice Compliance expert

Practice notes
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There is no specific regulatory requirement to have a file audit/review process. However, firms that have or wish to achieve Lexcel accreditation must have a file review system in place and professional indemnity (PI) insurers often enquire about a file review system as this is a sign of good risk management.

This Practice Note sets out the reasons why you should have a file review system and explains how to implement and maintain a successful system in your firm.

Regulatory requirements

SRA regime

Although there is no specific regulatory requirement to have a file review process, the SRA does require you to have an effective system for supervising clients' matters—see Practice Note: Supervision—law firms and Precedent: Supervision policy—law firms.

Where you supervise or manage others providing legal services:

  1. •

    you remain accountable for the work carried out through them, and

  2. •

    you must effectively supervise work being done for clients

You must ensure the individuals you manage are competent to carry out their role, and keep their professional knowledge and skills, as well as their understanding

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Jurisdiction(s):
United Kingdom
Key definition:
Audit definition
What does Audit mean?

A review of a client's business and assets undertaken by an asset-based lender periodically during the life of a facility with particular focus on the asset classes being funded.

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