LSO Audit Preparedness Review · Ontario Solo & Small Law Firms
Find out where you stand before the LSO calls.
The LSO's spot audit program measures By-Law 9 compliance. ClearPoint's Audit Preparedness Review looks at your trust accounting, records, and internal controls through the same lens — and gives you a detailed written report of findings and prioritized recommendations before an auditor is doing the same thing.
The situation
Most Ontario lawyers think they are probably fine. Some of them are right.
Trust accounting sits at an uncomfortable intersection for most lawyers. It is not what you studied, it is not where your confidence naturally lives, and the day-to-day demands of client work make it easy for compliance habits to drift without anyone noticing. The LSO's spot audit program is designed to find out where you stand. The question is whether you find out first.
Dormant trust balances
A client goes quiet. The matter closes informally. The balance sits unreviewed for months, then a year. By-Law 9 has specific requirements around inactive trust funds and an auditor will look at them.
Form 9A gaps
Every electronic transfer from trust to general requires a completed Form 9A under section 12 of By-Law 9. In busy practices this step gets missed more often than people expect. Auditors ask to see these records.
Reconciliation timing
Monthly reconciliations must be completed by the 25th of the following month. Late or missing reconciliations are the single most common finding in an LSO spot audit and the first thing an auditor checks.
Unresolved corrections
An accountant catches a discrepancy and fixes it. The books balance. But historical records showing an irregularity without documented resolution can create questions an auditor will want answered.
What the review covers
The same ground an auditor covers — before they arrive.
The Audit Preparedness Review examines three core areas of By-Law 9 compliance, each covering three specific sub-areas — nine in total. Each maps directly to what the LSO reviews in a spot audit. The difference is that findings here lead to fixes, not formal reports.
Trust Accounting Workflows
How trust receipts and disbursements are recorded and authorized, whether client ledgers are maintained correctly per matter, whether three-way reconciliations are being completed on time, and whether Form 9As are generated and retained for every applicable electronic transfer. This is where most audit findings originate.
Sub-areas reviewed:
Records & Audit Trail
Whether all records required under By-Law 9 exist and are current, whether transactions are traceable from authorization through to completion, whether supporting documentation is retained, and whether the firm could produce its records promptly and completely in response to an LSO request.
Sub-areas reviewed:
Internal Processes & Controls
Whether roles and responsibilities around trust accounting are clearly defined, whether there is appropriate separation of duties, whether dormant trust balances are being reviewed, and whether your processes would hold up if the person who normally handles trust accounting were unavailable.
Sub-areas reviewed:
The deliverable
A detailed written report — not a checklist.
You receive a professional PDF report covering all nine sub-areas with written findings, an overall audit posture rating, and prioritized recommendations with suggested timelines. The report is designed to be actionable and client-ready — clear enough to brief your bookkeeper, share with your accountant, or keep on file as documented due diligence.
How it works
A structured process. A clear deliverable. Minimal disruption to your practice.
The engagement is designed to be low-friction. Most of the work happens on ClearPoint's end. What we need from you is one focused working session and read-only access to your practice management system.
01
Kickoff call
We align on scope, access requirements, and scheduling. You walk away knowing exactly what happens next and what we need from you to get started efficiently.
02
Working session
A focused 60 to 90 minute session with the person who handles trust accounting day-to-day. We work through the trust workflows and records together, and this is where most of the substantive review happens.
03
Independent review
ClearPoint reviews your practice management system and records independently with read-only access. No changes are made. We follow up with minimal questions where needed.
04
Written report
You receive your detailed findings report within two weeks of the working session — a professional Word document you can act on immediately, share with your bookkeeper, or keep on file.
Report delivery
Within 2 weeks
Engagement type
Fixed fee
Access required
Read-only
Scope
Ontario firms
Who this is for
Whether you think you are fine — or know you are not.
This engagement is for Ontario solo and small firm lawyers who want to know where they actually stand on By-Law 9 compliance before the LSO tells them.
You think you are probably fine
- You have a bookkeeper handling trust day-to-day but have never independently verified the setup is compliant
- You are not certain whether requirements like Form 9A retention are being met consistently
- You have a dormant trust balance or two and are not sure how they have been handled
- An audit notice has arrived and you want a clear picture of your records before the auditor reviews them
You know there are issues
- Reconciliations have fallen behind and you need to understand the full picture before addressing them
- There was a commingling issue that was corrected but never formally reviewed against By-Law 9 requirements
- Your trust accounting process has been inconsistent and you need a clear baseline to work from
- You want an independent assessment before deciding how to approach a known compliance gap
Why ClearPoint
Operations expertise grounded in real financial understanding.
In addition to being a Clio Certified Partner and CosmoLex Certified Consultant with the CosmoLex Accounting Partner designation, Michael is also a QuickBooks ProAdvisor (Advanced). This combination of operational experience and deep accounting knowledge means we review trust accounting, reconciliations, and financial controls with the practical lens of someone who truly understands what proper compliance looks like — not just how the software is configured.
Learn more about Michael Stephens and ClearPoint
Ready to find out where you actually stand?
A short conversation is all it takes to understand whether the Audit Preparedness Review is the right fit for your firm. No obligation, no pressure — just a straight conversation about where you are and what the engagement would look like.
Ontario solo and small law firms. Fixed-fee engagement.
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