LSO Spot Audit Financial Records Checklist
A practical checklist for Ontario law firms to identify which financial records are available, which need review, and where bookkeeping gaps may need to be reconciled or reconstructed before submission.
Important: this is a preparedness checklist, not the Law Society's actual Spot Audit request. The assigned Spot Auditor sends the firm a standard list of required records through LSO Connects, usually with a specified submission date.
Trust bank → reconciliation → client trust listing → client ledgers → source documents.
Quick answer
Current LSO guidance says a Spot Auditor first asks the firm to complete a pre-audit questionnaire, then sends a standard list of financial records through LSO Connects. The submission date is typically within two to three weeks. If the firm cannot submit by the specified date, the LSO says the most recent trust comparison must be submitted immediately.
Classify every requested record before you submit
This simple status model helps separate document collection from actual bookkeeping readiness.
Available
Record exists, covers the requested period, and can be produced promptly.
Needs Review
Record exists but dates, balances, signatures, details, or supporting items should be checked.
Needs Reconciliation
Record exists but does not yet tie to bank, ledger, or client-listing balances.
Needs Reconstruction
The record is incomplete or missing and must be rebuilt from reliable source documents where possible.
Not Applicable
The record does not apply to the firm or requested period.
Trust-account records to gather and verify
These records come from the LSO's By-Law 9 record-keeping requirements and bookkeeping guidance. The auditor's actual request controls what your firm must submit.
Trust receipts & disbursements journals
Receipts and payments recorded with the details required by By-Law 9.
Client trust ledgers
A separate ledger for each client or matter showing trust receipts, disbursements, and unexpended balance.
Trust transfer journal
Transfers between client trust ledger accounts with the purpose of each transfer documented.
Monthly client trust listings
Month-end listing of clients with trust balances, including the total held for all clients.
Monthly trust bank reconciliations
A reconciliation for each trust bank account, including separate interest-bearing trust accounts where applicable.
Monthly trust comparisons
Comparison of the reconciled trust bank balance to the total client trust listing, with reasons for differences.
The monthly trust records should connect to each other
A common readiness problem is having each document separately but not having the balances and explanations tie together.
25-day rule: LSO guidance says trust reconciliations and comparisons must be prepared monthly and completed within 25 days after the end of the period covered by the monthly bank statement.
Do not prepare only the trust side
By-Law 9 also requires financial records for money received and disbursed outside trust, along with fee/billing records.
General receipts journal
Money received outside trust, recorded with required transaction details.
General disbursements journal
Money paid outside trust, including payment method, amount, payee, and transaction detail.
Fees book / chronological billings file
Record of fees and other billings showing dates, clients, and amounts.
General bank records
Statements, cleared cheque images where provided, and detailed deposit support for general accounts.
If not, classify it as review, reconciliation, or reconstruction work before submission.
Source documents and special records to check
Trust bank statements
Statements for each trust account for the requested periods.
Cleared cheque images
Trust and general-account cheque images where supplied by the financial institution.
Detailed deposit slips
Detailed duplicate deposit records supporting deposits into trust and general accounts.
Electronic trust transfer records
Signed Form 9A requisitions and signed printed confirmations for electronic trust transfers.
Valuable property record
Records for property other than money held in trust, where applicable.
Duplicate cash receipts book
Required records where the firm receives cash.
Teranet withdrawal records
Signed authorizations and confirmations where applicable to the practice.
Use the LSO retention categories when checking historical coverage
The LSO's summary of By-Law 9 record-keeping requirements groups the records below into 10-years-plus-current and 6-years-plus-current categories.
LSO summary: 10 years + current
LSO summary: 6 years + current
Also review issues the LSO says commonly appear in Spot Audits
The LSO's May 2026 Spot Audit guidance identifies common findings including records not current, missing section 18 information, late monthly trust comparisons, unresolved reconciling items, electronic trust-transfer issues, inactive client trust funds, incomplete client identification, and missing source-of-funds documentation.
Read the Spot Audit process guideNeed help turning the checklist into an organized records package?
Taxxel can assess the bookkeeping file, identify missing records, reconcile trust records, and organize financial information within our bookkeeping and financial-record support scope.
Official sources
Reviewed August 28, 2026. Taxxel is not the Law Society of Ontario, a law firm, or an audit/assurance provider. This article is general bookkeeping and financial-record information and does not replace the specific instructions issued by an assigned Spot Auditor.