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How to Conduct an Internal Audit (Consulting)

February 17, 2025

HOW TO CONDUCT AN INTERNAL AUDIT (CONSULTING)

If you’re reading this, it’s because you’re considering an internal audit – and want to do it correctly.

At Spodek Law Group, we understand how challenging this process can be.

We know that internal audits are a powerful way to spot weaknesses and prevent future crises.

REGARDLESS OF YOUR INDUSTRY. REGARDLESS OF THE SITUATION. REGARDLESS OF THE STAGE OF YOUR AUDIT. We can help you. The Spodek Law Group is a premier, and top rated law firm, that can help with all types of internal audits.

Why Do You Need an Internal Audit? Why Can We Help?

It’s simple: internal audits are designed to help ensure your organization complies with federal and state regulations, identifies operational inefficiencies, and most importantly – it helps you avoid potential legal exposure. If you’re considering doing an internal audit, you want to uncover issues before regulators or prosecutors do.

UNDERSTANDING PENALTIES, CRIMES, AND PUNISHMENTS

Internal audits aren’t just about good housekeeping excercises; these types of internal audits can help result in you avoiding serious legal and criminal consequences. According to the U.S. Department of Justice official site, businesses that fail to comply with federal regulations can face financial fines, criminal charges, or other penalties. White collar crimes, fraud, and misappropriation of funds are just a few examples of the charges that can stem from insufficient oversight, which is why you need to conduct internal audits. If you’re in this situation, it’s important you hire a law firm like the Spodek Law Group.

We’ve seen cases where companies ignore minor red flags—only to later face federal indictments, possible prison sentences for executives, or even forced closures. Depending on the severity of the situation, these charges can be classified as felonies in certain situations. That means potential jail time, loss of professional licenses, and a permanent criminal record.

INTERNAL AUDITS MATTER

We get it. You might be thinking: “Can an internal audit really shield me from the worst?” The answer is yes—if you do it right. An internal audit helps you navigate potential situations:

  • Identify compliance gaps in your company
  • Improve financial reporting in your company
  • Mitigate tax liabilities (see the IRS official site for official tax guidelines)
  • Protect your brand reputation

STEP-BY-STEP APPROACH TO AN INTERNAL AUDIT

  1. Define the Scope Of The Audit
    Decide which areas of the internal audit you want to examine. It could be financial systems, HR protocols, or compliance with state/federal regulations.

  2. Collect Relevant Documentation
    Gather everything possible that might be needed: bank statements, contracts, payroll records. The more data, the clearer the picture you will get.

  3. Interview Staff Members
    Speak to department heads, managers, employees. Uncover unintentional mistakes or potential misconduct which could result in you being financially impacted later with penalties.

  4. Analyze Findings
    Look for inconsistencies, red flags, or anomalies. This is where you ask: “Is our accounting truly accurate?” “Are we following compliance protocols?” These are good proactive steps and questions to take.

  5. Report and Recommend
    Provide a clear, actionable report to stakeholders. Outline your recommendations to fix any vulnerabilities.

STRATEGIES OF HOW WE’D DEFEND YOU

If the audit we do for you reveals potential wrongdoing—or if you’re already facing allegations—our defense attorneys can step in. We have over 50 years of combined experience handling tough cases. Here’s how we protect you:

  • Early Intervention: If you or a loved one is under investigation, we communicate with authorities fast. We aim to stop charges from being filed or escalate negotiations for reduced charges.
  • Challenging Evidence: If auditors uncovered something that law enforcement seized, we examine the legality of the search. If any rights were violated, we push to suppress that evidence.
  • Negotiation and Plea Bargains: When needed, we negotiate with prosecutors for lesser penalties, reduced charges, or alternative sentencing.
  • Trial-Ready Representation: If it goes to court, our attorneys assemble a strong defense strategy—whether it’s arguing lack of intent, mistaken identity, entrapment, or other defenses.

JUROR IN GHISLAINE MAXWELL MISTRIAL SCANDAL RETAINS ANNA SOROKIN’S LAWYER

We mention our notable cases because it underscores our dedication to handling tough cases and getting good outcomes. Our law firm fights for clients nationwide, regardless of how complicated the situation is. We handle everything from high-profile fraud allegations to government investigations.

WHAT SHOULD I DO IF INTERNAL AUDITS UNCOVER CRIMINAL BEHAVIOR?

Call us immediately.

We are available 24/7.
We offer a risk free consultation.
We have offices nationwide.

HOW A THOROUGH INTERNAL AUDIT PROTECTS YOU

  • Identifies misconduct early, before it escalates
  • Demonstrates good-faith compliance efforts to federal investigators
  • Minimizes the risk of major penalties or even prison time

EXPERIENCED DEDICATED

Spodek Law Group has years of experience handling criminal defense cases nationwide. If an internal audit seems to be leading to a potential crime—like fraud or embezzlement—we can help protect you. We are second-generation attorneys, and we’ve handled thousands of difficult cases.

PRIVATE DEFENSE AND CONSULTING

We’re not just a criminal defense law firm. We provide consulting on best practices for compliance, internal policies, and corrective actions. Our objective is to keep you out of trouble—so you can focus on growing your business.

Regardless of your company size, or your industry.
Regardless of whether you’ve been audited before or not.
Regardless of how minor or severe the situation is.
We can help you.

Contact us now to schedule a confidential consultation.

Lawyers You Can Trust

Todd Spodek

Founding Partner

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RALPH P. FRANCHO, JR

Associate

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JEREMY FEIGENBAUM

Associate Attorney

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ELIZABETH GARVEY

Associate

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CLAIRE BANKS

Associate

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RAJESH BARUA

Of-Counsel

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CHAD LEWIN

Of-Counsel

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