Independent Audits of Attorney Procedures for their IOLA/Trust Fund Accounts
What Every Attorney Needs to Know about Escrow Accounts and IOLA:
Handling attorney trust accounts is a large part of the practice of law in New York. Statewide, attorneys maintain over 48,000 IOLA accounts in approximately 200 banking institutions. Every New York lawyer who handles client funds must maintain an escrow account and lawyers must use an IOLA account for Qualifying Funds. This article provides an overview of the most important facts related to the audits of attorney procedures for their IOLA/trust fund accounts.
Hoberman & Lesser performs audits of escrow account transactions, policies and procedures, to assist attorneys’ compliance with state rules, including:
- Review the mechanics in place to receive and disburse funds. We will make suggestions to improve compliance.
- Test the account balances to ensure accurate reporting protocol both internally and to your clients.
- Test transactions and make suggestions to ensure procedures conform to professional guidelines.
- Perform testing, on a random sample of documents, to verify that your firm’s procedures are being followed by your accounting department.
If you have any questions related to ensuring that you are in compliance with escrow rules, or any other matter, please contact our office and we would be happy to assist you.