To satisfy due diligence and to prevent abusive billing, a client must be prepared to audit its legal or accounting invoices. Legal Cost Control provides peer review audit services by trained and experienced attorneys and accountants. All audited invoices are processed through Legal Cost Control's billing/case management system.
On Site Legal Reviews / On Site Accounting Reviews
Legal Cost Control's attorneys perform on-site reviews of the subject law and/or accounting firm's file(s), comparing the
file contents against billings submitted for payment. Legal Cost Control will analyze billing practices against client
guidelines, customary and reasonable billing standards, the
ABA Standing Committee on Ethics and Professional Responsibility Formal Opinion on Billing for Professional Fees, Disbursements
and Other Expenses and relevant case law. The audit will determine the reasonableness and necessity of the charges, verify that the
work product billed is in the file and verify documentation of costs and expenses. Invoices for professional services should fairly
reflect the basis on which the client's charges have been determined. Examples of issues addressed during an audit include, but are not
limited to, the following:
- Billing for time in excess of what was actually spent
- Duplicate time charges
- Over-staffing - proper utilization of personnel (e.g., unauthorized multiple attendance; multiple drafting and revision of documents; billing for supervision; multiple attorneys or accountants billing for document preparation; excessive file reviews; attorneys or accountants billing for performing secretarial or paralegal functions at attorney or accountant rates)
- Recycled work product - billing more than one case or client for the same hours spent
- Inefficient procedures (e.g., cryptic invoice descriptions; excessive minimum time charges; bundling of described functions)
- Excessive motion practice
- Rounding of time charges
- Charging for overhead (e.g., heat, ventilation and air condition, routine postage, local travel, office supplies, etc.)
- Mark-up on costs such as Lexis/Westlaw, expert witnesses, etc.
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