Preview Questions Legal Cost Auditor | Role Specific Skill

Question 1: How can a Legal Cost Auditor ensure transparency in billing for cases involving multiple attorneys?

Which action should you take?

Choose only one option

Proceed with the billing as long as one attorney's hours seem reasonable

Verify each attorney's billable hours, hourly rate, and work allocation to ensure fair distribution

Accept the total fee billed by the firm without reviewing individual attorney contributions

Ignore the distribution of fees among attorneys, focusing on the overall case billing

Question 2: How should a legal cost auditor assess "redundant billing" during an audit, and what steps should be taken to eliminate redundant charges in the final invoice?

Which action should you take?

Choose only one option

Redundant billing should be identified by reviewing multiple entries for the same task or service, and adjustments should be made to avoid overcharging

Redundant billing should be corrected by adjusting the final bill without notifying the client

Redundant billing should be ignored if the client is not concerned

Redundant billing only applies to cases with multiple attorneys, not solo practitioners

Question 3: What is the appropriate course of action when a Legal Cost Auditor finds that billing does not adhere to the client's instructions?

Which action should you take?

Choose only one option

Follow the firm's internal procedures to adjust the bill

Modify the bill to meet the firm's internal standards

Report the discrepancy to the client and rectify the bill

Ignore the instructions if they do not align with the firm's practices

Question 4: How should a Legal Cost Auditor address "billing discrepancies" that arise from different interpretations of the retainer agreement?

Which action should you take?

Choose only one option

Billing discrepancies should be documented but left unchanged unless the client requests a change

Billing discrepancies should be resolved by adjusting the invoice to match industry standards

The auditor should review the agreement, seek clarification from involved parties, and adjust the invoice as necessary to ensure compliance

Billing discrepancies should be ignored unless the client raises a concern

Question 5: How does "double billing" impact a legal cost audit, and what steps should a legal cost auditor take to identify and address it?

Which action should you take?

Choose only one option

Double billing only applies to hourly cases, not fixed-fee arrangements

Double billing should be flagged immediately, and the auditor should review time entries for duplication across different matters

Double billing should be considered a minor issue if the client agrees to the charges

Double billing should be ignored as long as the client is charged a flat fee

Question 6: When performing a cost audit, what is the primary ethical concern regarding the accuracy of billable hours?

Which action should you take?

Choose only one option

Overreporting the number of hours worked

Approving inflated hours if they are based on past estimates

Reporting hours based on averages rather than actual time worked

Underreporting the number of hours worked