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Compliance Audits

While the main purpose of the Delaware Lawyers' Fund for Client Protection (“Lawyers’ Fund”) is the reimbursement of clients whose attorneys have misappropriated client funds, another important function is the program of compliance audits. Rule 7 of the Rules of the Trustees of the Lawyers' Fund for Client Protection mandates that selected attorneys will be subject to audit by a certified public accountant selected by the Lawyers’ Fund to determine that the attorneys' books and records are in compliance with the recordkeeping requirements of Rule 1.15 of the Delaware Lawyers' Rules of Professional Conduct.

The Lawyers' Fund auditor performs approximately 60 compliance audits annually. However, the auditor’s services extend beyond the audits they perform. Their role is also educational and investigative. The auditor write articles and speaks at seminars to educate attorneys and staff about the importance of proper recordkeeping. The auditor is available to assist attorneys who are setting up their books and will assist if an attorney encounters a problem in his or her recordkeeping. If you require the assistance of the auditors, you may contact Judith M. Scarborough, CPA/ABV, CBA, Master, Sidlow & Associates, P.A., 750 Prides Crossing Suite 100, Newark, DE 19713 or e-mail jscarborough@mastersidlow.com.

The Audit Program is used by the Auditor of the Lawyers' Fund for Client Protection for the audits of attorneys' books and records to determine if they are in compliance with Rule 1.15 of the Delaware Lawyers' Rules of Professional Conduct.

Law firms may precertify their compliance with Rule 1.15 and 1.5(f) of the Delaware Lawyers’ Rules of Professional Conduct by filing with the LFCP a Precertification Letter with an Audit Program performed by an Approved Precertification Provider. It is beneficial to have a compliance audit because, even though it is not guaranteed, it is unlikely that a law firm will be selected by the Lawyers' Fund for an audit if a CPA firm has certified their compliance. To be an Approved Precertification Provider the accounting firm must have a certified public accountant and the accountant must have attended in the past three years the books and records training provided by the LFCP. Approved Precertification Provider List.