Legal audit is a complex legal analysis of company activity, separate branches of this activity, certain documents or transactions to the subject of their correspondence to the acting legislation, economic or judiciary law.
Legal audit aims at determination of potential company losses as a result of:
- Contractor’s violating duties;
- Tax pretensions on behalf of taxation authorities;
- Applying sanctions for violation of civil and legal duties;
- Company or officials’ bringing to administrative account;
- Company officials’ bringing to criminal responsibility.
Legal audit has following types:
- General complex legal audit of company activity.
- Legal audit of separate spheres of company activity.
- Legal audit of complicated transactions
- Legal audit of civil and legal, labor or administrative conflict.
- Legal audit of possible criminal arraigns.
Legal statement
Legal statement is drawn up as a result of legal audit reflecting detected violations and company risks.
Consequences of legal audit
After the Legal statement is prepared, specialists of the Audit Company “Glavbuh-Audit” perform to the client’s demand a number of actions to eliminate revealed violations and to neutralize risks. They elaborate drafts of necessary contracts and other documents, offer schemes of asset purchase/alienation, perform necessary operations in administrative authorities and client’s protection in court. For details, see Services.
Types of legal audit
I. General complex legal audit of company activity
- Legal audit of company corporate history. Question analysis connected with creation (privatization, restructuring, registration) of client’s enterprise, content analysis of statutory documents and other corporate acts, governing bodies’ structure, their competence and fact activity, questions of shares’ issue and placement, their purchase and legacy of ownership, history of general meetings and legacy of decisions made. Conflicts’ revelation and analysis.
- Legal audit of management and staff. Expertise of internal company document (local acts) regulating company activity and its departments as well as company internal labor and other relations. Labor relations analysis to the subject of legacy and conflicts.
- Legal audit of ownership. Legal status analysis of company personal and real assets as well as land resources used. Analysis of assets taxation and legal history of appearing. Revelation and analysis of potential conflicts.
- Legal audit of commercial activity. Check of company activity legacy, necessity of licensing and special permission.
- Legal audit of contractual practice. Legal estimation of compulsory contractual practice, questions of delivery and payment. Revealing contractor’s violation obligations risks, claims made and taxation sanctions possibility.
II. Legal audit of complicated transactions
Legal analysis of purchased/sold property, contract analysis (system of contracts), calculation system analysis and order of property disposal to reveal risks of client’s losses and possibility of conflicts.
III. Legal audit of civil and legal, labour or administrative conflict.
Studying client’s legal position in conflict, studying documents and proofs, studying scenarios of conflict development, performing conflict’s SWOT-analysis, developing success strategy in conflict.
