LSO Spot Audit Notice: What Ontario Lawyers Should Do Next
A practical financial-record readiness guide for law firms that have been contacted about a Law Society of Ontario Spot Audit.
Start with the requested records, confirm the trust books are current, and identify gaps before the submission deadline.
Quick answer: The LSO's May 2026 Spot Audit guidance describes a process that begins with contact from the assigned auditor, a pre-audit questionnaire, and a standard financial-record request through LSO Connects. The specified submission date is typically within two to three weeks. The auditor may then ask for explanations or additional documents before discussing the Audit Report and outcome.
What the current LSO guidance says happens
The LSO's May 2026 CPD Chronicles Spot Audit article describes the current process for firms selected for a Spot Audit. The exact request and timing in your matter are controlled by the instructions you receive from the Law Society.
From Spot Audit contact to outcome
Initial contact
The assigned Spot Auditor contacts the firm and outlines the audit process.
Pre-audit questionnaire
The firm provides information about how the practice operates.
Financial-record request
A standard list of requested financial records is delivered through LSO Connects.
Records submitted
The May 2026 LSO guidance says the specified deadline is typically within two to three weeks.
Review & questions
The Auditor may request explanations or additional documents after reviewing the submission.
Audit report & outcome
The Auditor discusses findings and the file proceeds through the LSO review process.
What to do after receiving the notice
Read the notice carefully and identify every requested period, account, and record category.
Do not wait to discover whether monthly trust reconciliations and comparisons are current.
Gather trust and general bank statements, client trust listings, trust journals, client ledgers, and supporting records.
Identify unexplained reconciling items, stale items, inactive trust balances, or missing source documents early.
Keep the original records intact. Make corrections through a traceable bookkeeping process rather than overwriting history.
Separate bookkeeping preparation from legal or regulatory advice and involve the appropriate professional where needed.
A rapid records assessment can separate what is available, what needs reconciliation, and what must be reconstructed.
Issues identified in the LSO's May 2026 Spot Audit guidance
These are not predictions about any particular firm. They are examples the LSO identified as common findings in its May 2026 article.
Remember the monthly 25-day trust requirement
The LSO's trust-account reconciliation guidance states that reconciliations and comparisons for all firm trust accounts must be prepared monthly and completed within 25 days after the end of the period covered by the financial institution's monthly statement. The requirement applies even where there was no trust activity in the month.
How Taxxel can help
Taxxel can assess the condition of the bookkeeping records, bring books current where supporting information exists, reconcile trust records, organize source documents, and prepare a structured financial-record package. Taxxel does not perform the LSO audit, provide legal advice, or guarantee a regulatory outcome.
Official sources
This Taxxel article is practical bookkeeping information and is not legal advice or an official Law Society interpretation.