The monitoring of the legal area is usually a complex and difficult task for organizations, which however cannot be neglected.
Faced with the need to carry out a legal audit, it is important to evaluate various aspects:
- The structure of the area, the profile of its members and its products and services
- Its relationship with other sectors, mainly with the accounting area
- Portfolio recovery management in its judicial and extra-judicial phases
- Management of cases in which the entity is a defendant.
At Grant Thornton Argentina we have developed an innovative auditing service specially designed for the correct supervision of the legal area, mainly in the following aspects:
- Survey of the structure, preparation of flow charts by responsibilities and verification of control points established in the existing regulations
- Analysis of legal products and services and add value in them, elimination of operational errors and optimal use of scarce resources
- Relationship between the profile of the members of the area and its products and services.
- Survey and analysis of litigation in which the entity is a plaintiff, and accounting impact based on the credits received
- Survey and analysis of litigation in which the entity is a defendant and its relationship with the accounting of contingent liabilities.
In portfolio recovery management, the opportunity cost is directly proportional to the delays incurred in the recovery tasks; that is why we understand that they must be properly supervised.
When the management is extrajudicial, we evaluate:
- Compliance with the internal policies of the entity
- Efficiency in management (waiting times between the assignment of the case and its negotiation)
- Efficiency in management, analysing the percentage of recovery based on the existing debt.
When the management is judicial, it requires the evaluation of:
- Management efficiency ratios, analysing the delay between procedural impulses
- Efficiency ratios, analysing the percentage of recovery in relation to the amount demanded
- Detection of procedural anomalies: loss of lawsuits, expiration of instance, paralysis of causes.
When the entity is a defendant, it is taken into consideration that the impulse of the procedure is on the side of the counterparty. Therefore, the analysis focuses on:
- Answers in time of transfers, requests or legal requirements
- Loss of opportunity in the request for expiry of evidence or instance.