Home » Internal Auditing in Law Firms. In this case, you are a new MBA hire and have been given this file to make a report concerning one of your company’s…

Internal Auditing in Law Firms. In this case, you are a new MBA hire and have been given this file to make a report concerning one of your company’s…

Internal Auditing in Law Firms. In this case, you are a new MBA hire and have been given this file to make a report concerning one of your company’s clients, Jack Rabbit Law, Inc. You know that law firms are scared of adverse publicity from billing errors, and are turning to internal auditors to catch problems before others do. Jack Rabbit Law caught one error before the bills went out. In two, out-of-town trials, one client was almost billed $10,200 for a hotel in which its attorneys didn’t stay. Before Jack Rabbit Law thought about hiring its own internal auditor, its former managing partner went to prison for cheating the firm and several clients of more than $836,000 which went unobserved. Some of the new internal auditors report to the head of the finance department. At other times, fearing a conflict of interest, they have their auditors report directly to the firm’s executive director or to the firm’s executive committee (e.g., like a Board of Directors). Jack Rabbit Law partners, however, are not sure of their own internal auditors at this point and the dual system in place. What can your firm–as an outside consultant looking after the law firm’s interests, suggest or do to relieve their concerns? List the parameters that would need to be put in place along with your own solutions to stop billing errors from going out. 500 word or more, references”

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