Law firms: Are your trust accounts secure?

Sunday, August 9th, 2009

Many law firms, large and small, hold funds in trust (or escrow) for their clients.  These funds can be entrusted to you for a very short term, or for quite a long time and the amounts can be substantial.   But whatever the circumstance, make no mistake, you are responsible for the security of those funds.

Are you sure that your trust accounts are secure?

Making sure those funds are properly safeguarded requires adequate internal controls. Internal controls are a process by which those charged with governance promote operational efficiency, help ensure the reliability of financial statements and compliance with laws and regulations, and (perhaps most important to a law firm’s reputation and profitability) reduce the risk of asset loss.    (more…)