Practice Audits fall under the Practice Management Review process legislated as part of the 1999 amendments to the Law Society Act, ss.41–49 together with By–Law 11 on Professional Competence, and Rule 3.01 of the Paralegal Rules of Conduct.
All Practice Management Reviews, including Practice Audits, are proactive and preventative — designed to support the goals of Law Society licensees to be efficient, effective and competent — and reflect the Society’s emphasis on quality assurance in service of the public interest. The reviews are remedial and consultative, as they involve the licensee, the Reviewer and Practice Review staff every step of the way.
The Process
Paralegal participants are selected randomly from all licensees holding a P1 license.
The Practice Audit program is administered and co-ordinated by Law Society staff, and the actual assessment and reporting is completed by one of the Law Society’s Counsel, Practice Review.
The Reviewer and the paralegal begin their discussions by completing the Paralegal Basic Management Checklist, a practice analysis tool which assists in identifying possible deficiencies in the practice. The Reviewer will also conduct a review of client files and may speak with other office staff or associates.
Practice management skills are the focus of a Practice Audit, but it also includes an assessment of ongoing compliance with financial record-keeping requirements (By–Law 9). On-site guidance is aimed at helping the paralegal establish or remediate practice management systems and correct financial record-keeping practices before any such deficiencies adversely affect service to clients or lead to serious non-compliance or misconduct issues.
Throughout the Practice Audit the paralegal will receive practical advice and feedback. Risk areas will be identified and strategies for remediation will be discussed. In an effort to assist the paralegal with prompt remediation of risk areas, matters requiring action are identified during the course of the Practice Audit. The paralegal will also be directed to resources on point.
Where the Practice Audit is of a paralegal not responsible for firm management issues, and deficiencies are noted in firm-wide systems, these matters will be addressed directly with the responsible partner.
Areas reviewed may include:
- Time Management
- tickler system
- recording/docketing of time
- task list – current/future
- calendar control system
- listening/interviewing skills
- File Management/Client Service
- # open files
- opening/closing file procedure
- efficient filing system/organization (both manual and electronic)
- file storage – procedure/length of time
- file destruction
- conflicts check
- office manual – procedures and systems
- client intake, action, closure
- undertakings
- knowledge & skill (legal principles, procedures and substantive law)
- Alternative Dispute Resolution (ADR)
- confidentiality – where to keep your files
- writing and drafting skills
- handling of prospective clients
- engagement letters
- non-engagement letters
- giving Independent Legal Advice for matters within scope
- managing client expectations
- handling client complaints
- improving writing skills
- Financial Management
- fees and billings
- record and bookkeeping
- billings – fees & disbursements
- controls for accounts payable & receivable
- trust accounts
- Communications
- managing expectations
- following client instructions
- responding to client’s telephone calls
- keeping client reasonably informed
- replying within a reasonable time
- informing client about the position of a matter
- handling the telephone
- handling mail and e-mail
- Technology and Equipment
- e-commerce
- computers
- document templates
- library and research resources
- phone/voice
- document transmission (email, fax, scanner, web)
- Professional Management
- co-op students
- paralegal field placement students
- partners
- associates
- support staff
- training & support
- Continuing Professional Development (CPD)
- partnership and other business arrangement agreements
Opinion on Competence
Following the Practice Audit, the Reviewer prepares a report containing an analysis and assessment of the practice, including recommendations for appropriate remedies. Given the number of engagements annually and the length of the reports, a copy of the report is typically released to the paralegal approximately three months after the Reviewer’s attendance. The report may include recommendations for improvements and enhancements to current practice management systems, or may include mandatory recommendations where action is required to ensure that the paralegal meets standards of competence.
If the report is a final report, an opinion on competence will be rendered. The paralegal will be asked to provide a response to the Practice Review Department confirming that they have reviewed the report and providing any comments on the report.
If the report is an initial report, then a re-attendance will be scheduled after approximately six months. The re-attendance will permit an assessment of the implementation of mandatory recommendations made in the initial report and the completion of the Practice Audit.
If there are no recommendations made, or where the Practice Review Department is satisfied with the paralegal’s implementation of any mandatory recommendations made, the file will be closed.
If the paralegal is failing to meet the standards of competence required pursuant to the Law Society Act, then the Practice Review Department may ask the paralegal to enter into a Proposal Order or may be obliged to refer the matter to Professional Regulation.