In order to keep the entrepreneur on track, there is a need not only for a financial audit, but for a legal audit as well. A legal audit can help the entrepreneurs to assess the legal risk which is a part of the risk management in entities. Of course, the extent and complexity of the legal audit varies depending on the type, size and stage of growth of the company, the type of business, the number of shareholders and employees etc. A wide range of issues may be examined by performing a legal audit in the entity and some of them are as follows: -choice and structure of the entity, corporate acts or documentation of the board of directors, utilization and protection of intellectual property rights including copyrights, insurance coverage, methods of marketing, pending and threatened litigation and/or arbitration, employment agreements, contractual negotiations and conclusion of them, product liability, a review of sales and collection pract...