Responding to audit letters is a professional requirement for every law firm. When clients get audited, the auditor confers with the client’s attorneys for feedback on loss contingencies — these include any pending litigation, unasserted claims, and assessments which might materially impact the auditor’s judgement of the company’s financial condition and accounting of loss contingencies.
And while most firms receive audit letters, they vary greatly in how they manage their response efforts. In practice, organizations typically rely on manual processes that are inefficient and create an unwelcome burden for lawyers and staff.
A Modern, Technology-drive Approach to Audit Letter Response
Using the InOutsource solution for audit letter response, risk teams can execute this critical process more efficiently while minimizing the overhead and interruption lawyers experience with legacy, manual methods. This purpose-built software solution integrates key historical information, automates repeatable workflows, and centralizes review and reporting. The end result is that your audit letter responses are delivered to clients faster, and with less burden to your operations team and to your lawyers.
Audit Letter Response:
Centralize, Integrate and Automate this Critical Risk Workflow
Manual Audit Letter Response Management — Inefficient and Risky
When it comes to responding to voluminous client audit letter requests, law firms face tremendous risk, overhead and inconvenience. That pain typically hits many people, including: lawyers, legal assistants, intake and conflicts teams, finance staff, and other operational players.
Every detail must be gathered, reviewed and verified. And because firms have to certify their responses, no stone can be left unturned. So for every client, each matter must be identified and every single practitioner surveyed on whether they have “reasonable knowledge” about material factors.
Collecting and documenting input from every lawyer comprehensively and consistently — and doing so in a timely manner — presents significant challenges.
Even basic supporting analysis, like building lists of which attorneys worked on which matters, typically creates painful burdens for risk and finance staff.
Furthermore, because clients expect outside counsel to address audit letter response as a matter of professional responsibility — seeing little strategic value in this compliance exercise — firms typically cannot fully bill for all attorney and staff time spent.
InOutsource Has the Solution
If your firm is looking for a fresh approach to managing audit letter response, InOutsource has the answer. Using automated workflow, reporting and data integration, we take the pain out of the process.
And with a configurable solution built on the Intapp Risk & Compliance platform, we enable your firm to generate even greater return on your Intapp investment — without having to implement and integrate a dedicated, stand-alone software tool.
Our solution, built on the Intapp risk platform, connects and manages the complete audit response lifecycle:
“We have virtually eliminated paper. Going electronic has saved us so much time. We send an electronic link to the responsible attorney and to the committee and they click on a link and review it that way.”
Lisa Waldron
Risk Compliance Manager
“We received glowing feedback from offices that previously received voluminous PDF packets that were cumbersome to review. InOutsource provided more value than a custom software developer. We get great collaboration and real-time interaction, plus we know the team and enjoy working with them.”
Nicholas Weeks
Director of Risk Management
“Our audit response letter initiative was a great example of how a good idea could get off the ground quickly, for the benefit of the firm and our clients… With confidence in the Intapp platform, and partnering with InOutsource, the project was an instant success.”
Andrew Mulcahy
Director of IT Solutions
“It was a joy to work with InOutsource and we benefitted significantly from their experience with and understanding of both the nuances and complexities of the audit letter response process and the Intapp technology stack. Their responsiveness to our queries and their approach to problem-solving has made this a positive experience for our firm.”
Fadi Kalach
Data Architect
Building on its existing Intapp investment, WilmerHale earned awards and accolades for its internal initiative to automate audit response letter management.
Read a summary of their (Star Wars themed) ILTA conference presentation, highlighting the strategy and steps they took to streamline a painful, inefficient process with software-driven document creation and process workflow management (notifications, reminders, tracking, and reporting).
The firm’s metrics show the new system slashing manual and repetitive work, making the process 36% more efficient. And their efforts were characterized as “magical” and “revolutionary” by partners.
“In my Outside Counsel Guidelines database, fully 31% of the clients say that they will not accept any charges for preparation of audit response letters – even though if one is aware of a contingent liability that meets the test, it may take many hours to settle how to report that so that it can be disclosed properly.
“My experience has been that all too often CPAs tend not to mention law firms’ reports, I assume on the basis that the amounts are not material or too contingent.”
Simon Chester
Head of Client and Matter Acceptance Team, Gowling WLG
“Some lawyers may create more potential professional liability over the coming months by drafting a single letter in response to their client’s independent auditor’s request for information than they will throughout the entire rest of the year.
“…[too many firms] have failed to develop and implement appropriate internal policies to insure they handle these auditor’s requests according to the professional standards required of them.
“Best professional practice demands that every attorney or law firm review the ABA-AICPA requirements before responding to Auditor’s Request for Information. Every law firm should implement an internal procedure for responding to auditor’s request for information.“
Tim Soefje
Managing Member and Head of Professional Liability Section, Seltzer Chadwick Soefje & Ladik, PLLC
Connect with us to learn more, to see a demonstration, and to explore how we can address your firm’s audit letter management:
1518 Walnut Street
Suite 1800
Philadelphia, PA 19102
P: (267) 299-6260
F: (267) 299-6266
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A seasoned Information Governance expert who’s executed successful tours of duty in law firm records departments, John Zahradnick has been called the “MacGyver” of Information Governance.
John applies a unique mix of IG expertise, perspective, and best practices to design practical policy, process, and technology solutions for law firms. And he brings the project management and technical skills to effectively implement that change in real-world environments. In short, John gets his hands wet owning the execution of the solutions he designs — so there’s no gap between theory and practice (or accountability).
He’s up for the most complex projects and welcomes new challenges. RMS upgrades and swap outs, complex IG solution/process integration efforts, DMS implementations, tough data governance and data quality/cleanup initiatives, customer BI app development, and more — are all well within his wheelhouse.
When you engage John to build and deliver a solution, he’ll work to design a “right sized” fit for your firm. That fit typically includes a mix of policy, process, and technical implementation — thoughtfully rolled out, with the appropriate levels of training, user acceptance testing, and change management.
Through all of this, he also brings the latest best practices and recommendations to the table, including approaches for integrating client guidelines and internal policies directly into the fabric of process execution, and automatically capturing data and metrics that enable new levels of reporting on efficiency and compliance.
Daniel is an experienced technical resource with a rich background in replacing firm systems by ensuring your data is migrated accurately and with consistency. In tandem with his business acumen and analysis, Daniel’s strong suit is making sure that your team is able to capitalize on its technology infrastructure by aligning business systems with your information governance policies.
Whether he’s creating a new perspective from which a firm can view their information or migrating data from a troublesome legacy system onto a new platform, Daniel takes pride in facing a challenge.
When Daniel is not assisting clients, he enjoys spending time outdoors, reading, and making nice meals that his children refuse to eat.
Allen brings over 20 years of professional experience using a wide variety of technologies to InOutsource.
He spent almost 10 of those years at major Philadelphia-based law firms in different roles, including a developer, senior systems engineer, and manager of a team of developers.
He has extensive experience routing data from disparate systems both on- and off-premises using proven, performant techniques and methodologies. He has skills and experience creating processes using combinations of SQL and Intapp Integrate, consuming and manipulating data stored in databases, JSON and XML formats or directly from web/cloud services.
John provides project management, consulting, and process design support for pricing, conflicts, and new business intake.
John applies his experience as an attorney and project management skills to help clients address a range of challenges. He assists initial implementations and provides support throughout each project’s lifecycle. He is skilled at communicating across all levels and constituencies within a firm and understanding their needs.
Prior to joining InOutsource, John practiced law for several years, primarily in the litigation department of a large Philadelphia-based law firm. He also served as in-house counsel for a local company on both litigation and transactional matters. His diverse experiences as an attorney give him a keen understanding of law firms’ business imperatives, as well as the pressure points they encounter in different departments and practice areas.
John is a cum laude graduate of Temple University Beasley School of Law, where he was a staff member of the Temple Law Review. He is also a Certified Associate in Project Management (CAPM).
Chris’ primary focus at InOutsource is project management. Since he began with us in 2016 he has led the team through one successful implementation after another, each with its own set of hurdles and personalities.
In addition to managing the implementations Chris handles a number of aspects on our projects from consulting support and process design to development and project organization.
As someone that has worked in new business intake, conflicts due diligence and resolution with a top international law firm for a decade before coming to InOutsource his first-hand knowledge of the process and its intricacies adds a layer of expertise that is invaluable to our clients.
Alyse supervises all finance, human resources and administrative responsibilities. She is also responsible for planning, coordinating, and supporting daily operational functions as well as ensuring InOutsource’s business lines receive the support necessary to meet the needs of every client.
With over 25 years of experience working with professional service companies, Alyse has helped business owners achieve their financial goals and better understand their business models. Starting her career at Ernst & Young LLP, she has worked with a wide range of small, mid-sized and multinational companies to identify best practices and expand their impact.
Alyse has her B.S. degree in Accounting and Business Management from the State University of New York at Albany and is a Certified Public Accountant in Pennsylvania and New York.
Jasmine is an experienced billing analyst with an extensive background in fiscal accounting, vendor management and procurement. She has over 20 years of experience in customer service, working with government entities, nonprofit organizations, marketing companies and law firms. She is a graduate of the University of California, Davis and has obtained a Bachelor’s of Arts Degree in English with an emphasis in Literary Theory and Criticism. When she is not working, she enjoys spending time with family, cooking, gardening, hiking, reading and painting.
Krizia’s career trajectory began as a data integrity analyst, gradually transitioning into an application developer responsible for supporting on-premise systems.
During her tenure, she collaborated with various law firms and consulting firms to implement Intapp Open, Flow and Integrate. This involved developing workflows and integrations encompassing business intake, conflicts, document management, accounting, and audit forms. Additionally, she served as a tier 1 to 3 technical support specialist, conducting technical analyses and collaborating with different teams to provide long-term solutions.
In her leisure time, Krizia enjoys reading books, doing yoga, running, and playing with her dog and cat.
Bryan is passionate about helping firms thrive in a world of accelerating change.
A seasoned technology leader, he has decades of experience guiding organizations on embracing intelligent information and collaboration management, cloud software, and innovative Microsoft solutions.
Most recently, Bryan has helped dozens of Am Law 150 firms adopt M365 Modern Work best practices and unified collaboration with Microsoft Teams.
Well versed in the transformative value of Copilot and AI in legal, Bryan regularly presents at industry events on the responsible consumption of AI and M365 innovation.
His most recent focus is helping law firms leverage M365 and emerging AI tools to modernize matter and client collaboration as part of broader initiatives to adopt modern work best practices.
Outside of work, Bryan is an avid swimmer, climber, and outdoor enthusiast. Ask him about his next adventure.
Sonia Ahluwalia is a passionate and results-oriented leader with over 20 years of experience in Business Transformation, Program Management, Change Management, Data Optimization, Risk Mitigation, and Innovation. She has a proven track record in legal technology, having worked at several consulting firms, including an AMLAW 100 firm and Accenture Federal Services. She excels in delivering business transformation initiatives that result in significant improvements in revenue growth, EBITDA, and operational efficiency. Sonia is a creative thinker and innovative thought leader who is passionate about tackling complex business problems.
Sonia has experience building world-class software engineering solutions and teams and managing complex initiatives at both tactical and strategic levels. She is a distinguished business strategist and value creator with a passion for operational excellence. Sonia excels at uncovering value opportunities and translating them into actionable plans. She is also skilled at building high-performing teams and empowering them to achieve organizational goals. Sonia has a keen eye for current market trends and her ability to identify and capitalize on opportunities is unmatched.
Jeannine meticulously supports the Accounts Receivable department in the preparation and monitoring of invoices. As the Billing Assistant, she also provides support to the administrative team. Jeannine holds an M.A. from Temple University. When she’s not hard at work at her desk, Jeannine can usually be found working in her garden.
Alyssa has been in the Human Resources field since 2013, and has gained a wealth of knowledge in leadership, HR Policies and Procedures, and HR Technology Systems.
Alyssa comes from the public sector working for the Superior Court of NJ as a HR Generalist with a focus on Leave of Absence Administration, Payroll and Benefit Administration, and New Hire On-boarding for 500 employees. Alyssa works closely with the Director of Finance and Administration to facilitate the recruiting and on-boarding process for InOutsource. Aside from supporting the rest of the Administration Team, Alyssa is also the point contact for Performance Reviews, and Training and Development.
Alyssa received her Bachelor of Arts in Communication from Monmouth University. When not working, you can find Alyssa spending her free time down at the shore.
Arielle is a second-year student from Drexel University with a passion for writing, statistics, and computer science, leading her down the path of data and analytics. Despite being new to the field, Arielle is excited to apply her current programming knowledge and also learn more in the process.
When not sitting behind a computer, Arielle loves reading comics, learning new languages, and ordering intricate pumpkin drinks.
Lorin has over 17 years in the legal industry, with 13 of those years spent with an international law firm. Her prior experience as a Conflicts Manager and Technology Business Analyst Manager will be beneficial in her role as a Project Manager here at InOutsource. Lorin holds a Bachelor of Arts in Communication and an Associates degree in Paralegal Studies. She has a passion for helping people and is always looking forward to assisting our clients with projects.
When not working, Lorin enjoys spending time with family, traveling, and enjoying the outdoors.
Victoria provides project management support to our IGS team.
She has been in the legal field for over 11 years, with 3 of those years working for the Denver U.S. Attorney’s Office in the criminal division. Victoria has 8 years’ experience in family law and is comfortable working with clients and assisting clients with their needs. Victoria holds her Project Management Professional (PMP) certification which will be beneficial in her role as a Project Manager here at InOutsource.
When not working Victoria enjoys scuba diving, traveling, hiking and spending time with her two dogs.
Rose opens the line of communication between clients and the team to get projects done. She supports the Information Governance Systems department as a Project Manager.
Rose has over five years of experience in strategic implementation, team building, and business development.
Rose earned her J.D from Maurice A. Deane School of Law at Hofstra University, where she was the Vice President of the Black Law Student Association and holds a Bachelor of Arts degree in English from SUNY Albany.
When she’s not working, you’re most likely to find Rose at a Barre class or shopping the latest fashion trends.
Starting from 2014, Matthew started his Boomi career, among the first group of people who professionally provided Boomi Consultancy Service. Matthew can carry out Boomi integration projects independently and lead a team to carry out big-scale projects. After 8 years of serving as a Boomi consultant, Matthew has led more than 100 complete Boomi development life cycles for 31 customers. For most of his projects, Matthew served as both architect and developer.
Most customers visualized Matthew as Boomi subject matter expert and Boomi go-to person. Matthew has experience in full Boomi development life cycle: customer engagement and presentation, project scoping and planning, requirement analysis, workflow design, collaboration pattern design, architecture design, Boomi process implementation, connectivity test, unit test, integration test, user acceptance test (UAT), production promotion, postproduction maintenance, and training.
Through more than 100 Boomi development life cycles, Matthew maintained and improved Boomi best practices solidly step by step. His best practice is quite welcomed by the customer, ensuring every project not only on the technical deliverables side, but also on the user experience, collaboration styles, documentation, and cost-effectiveness aspects.
John brings over 25 years of professional experience in knowledge transfer. He spent many years in academic publishing overseeing teams in content creation, editorial and production, and marketing and promotion. John has created innovative digital learning products as well educational websites that receive millions of pageviews. He is the author of five books connected to writing and publishing.
John earned a bachelor’s degree in Education from Kutztown University in Pennsylvania. His new role at InOutsource is Product Manager for the Nectar E-Learning Platform.
When John is not at his desk, he enjoys spending time reading, listening to podcasts, and running. He owns more books than he will ever get to, but he is trying.