Legal Audit Law and Legal Definition

A legal audit is service providing billing oversight to lawyers and law firms to satisfy due diligence and to prevent abusive billing. An auditing company reviews legal bills to ensure compliance with customary and reasonable billing standards and guidelines.

The audit will typically analyze billing practices using factors such as client guidelines, customary and reasonable billing standards, the ABA Standing Committee on Ethics and Professional Responsibility Formal Opinion on Billing for Professional Fees, Disbursements and Other Expenses, and relevant case law. The examination will verify the reasonableness and necessity of the charges, that the work product billed for has been performed, and confirm documentation of costs and expenses.