Project Management Accounting: Budgeting, Tracking, and Reporting Costs and Profitability, Second Edition

Engagement Acceptance

Once you have completed the risk assessment, someone must decide whether or not to accept the project. The following questions will guide you to that decision:

• Do you have the competency and availability/manpower to perform the engagement to the level your client is expecting?
• Do you have any reasons to doubt your client's integrity or honesty?
• Is the organizational structure conducive to the way you like to work?
• Do they have the appropriate manpower for you to work with?
• Is there anything in their accountant's report on the financial statements that you should be concerned with?
• Is there anything in the project specific risk that makes the success of the project unlikely?
• Will the acceptance of this engagement cause a conflict of interest with other existing or potential clients?
• Are you concerned about being paid for your services?
• Will you make a profit on this engagement?

As indicated earlier, you will have to answer these questions honestly and the decision is left to you.