Client Trust Account Compliance Self-Audit

CLIENT TRUST ACCOUNT AUDIT CHECKLIST — Professional Responsibility Compliance CONTEXT: Conducting a self-audit of client trust account practices in advance of potential bar review, with particular attention to procedures related to AI-assisted billing and matter management. AUDIT AREAS: I. ACCOUNT SEGREGATION [ ] Confirm that client funds are held in a trust account separate from firm operating accounts [ ] Verify that no firm funds are commingled with client funds in any trust account [ ] Confirm that interest earned on pooled trust accounts is directed to the applicable bar foundation program (IOLTA/IOTA) II. LEDGER ACCURACY [ ] Verify that a separate ledger entry exists for each client matter with funds in trust [ ] Confirm that all deposits are recorded with: client name, matter number, amount, date, and source [ ] Confirm that all disbursements are recorded with: client name, matter number, amount, date, payee, and purpose [ ] Confirm that the running balance for each client ledger is accurately maintained III. RECONCILIATION [ ] Monthly bank statement reconciliation completed for each trust account [ ] Three-way reconciliation performed: bank statement balance = trust ledger total = individual client ledger sum [ ] Reconciliation records retained for minimum required period (typically 5 years — verify jurisdiction requirement) IV. DISBURSEMENT AUTHORIZATION [ ] Confirm that only authorized signatories may disburse from trust [ ] Confirm that earned fees are transferred to operating account only upon completion of the work or client authorization, not in advance [ ] Confirm that no disbursements are made in anticipation of future deposits V. AI AND TECHNOLOGY TOUCHPOINTS [ ] Verify that no AI billing tool has access to trust account credentials [ ] Confirm that AI-generated billing narratives are reviewed by a supervising attorney before invoices are issued [ ] Confirm that time entries generated or suggested by AI tools are verified against actual work performed before billing VI. DOCUMENTATION [ ] Client authorization exists for each matter where funds were received into trust [ ] All disbursement authorizations are documented in writing [ ] Fee agreements clearly describe when earned fees will be transferred from trust This checklist is a self-audit tool. Actual trust account practices must comply with the specific rules of the attorney's jurisdiction. Consult your state bar's trust accounting handbook and ethics resources for authoritative guidance. This does not constitute legal advice.