Objective:
To establish a systematic approach for evaluating and accepting new clients, ensuring that our firm maintains its integrity, complies with professional standards, and mitigates potential risks.
- Client Evaluation Criteria:
– Reputation and Integrity:
We will conduct background checks on potential clients, including their business practices, financial stability, and reputation in the industry. This may involve reviewing public records, financial statements, and seeking references from other professionals.
– Alignment with Firm Values:
We will assess whether the potential client’s values and business practices align with our firm’s ethical standards and mission. This includes evaluating their commitment to compliance with laws and regulations. - Risk Assessment:
– Risk Profiling:
Each potential client will be assigned a risk profile based on factors such as industry, size, complexity of operations, and previous compliance issues. High-risk clients will undergo a more thorough review process.
– Conflict of Interest Check:
We will conduct a conflict of interest assessment to ensure that accepting the client will not compromise our ability to serve existing clients or violate ethical standards. - Engagement Scope:
– Clear Scope of Services:
The scope of services to be provided will be clearly defined and documented in the engagement letter. This ensures that both the firm and the client have a mutual understanding of expectations.
– Fee Structure:
We will establish a transparent fee structure that reflects the complexity of the services provided and ensures that quality is not compromised for financial considerations. - Approval Process:
– Internal Review:
A designated team, including senior management and relevant department heads, will review all client acceptance requests. This team will evaluate the findings from the client evaluation and risk assessment.
– Final Approval:
The final decision to accept a client will be made by the Managing Partner or a designated partner, ensuring accountability and oversight. - Documentation and Record Keeping:
– Comprehensive Documentation:
All evaluations, assessments, and decisions regarding client acceptance will be documented and retained in accordance with our firm’s record-keeping policies. This documentation will be essential for future reference and compliance audits.
– Regular Reviews:
We will conduct periodic reviews of our client base to ensure ongoing compliance with our acceptance criteria and to identify any potential issues that may arise during the engagement.