Good Academic Essay About Finance

A letter of engagement specifies the relationship between a firm and a service provider. Therefore, through a letter of engagement, a service provider and a firm become aware of the services offered as well as the terms and conditions under which they are offered.
The major components of an engagement letter include the scope of engagement, completion deadlines, contingencies of the engagement, special terms and compensation.
The main challenge of developing an engagement letter is agreement on the terms. Both parties seek to obtain terms that favour them. Therefore, there is a push and pull as different parties bargain and negotiate for the best terms. Another challenge is that a letter of engagement is riddled with a lot of legal jargon as it seeks to protect the drafting party in case of any litigation problem that arises in future.
The scope of an engagement letter should include what the parties are expected to do, how they are supposed to do it and any equipment that they need to undertake their duties. A project plan should include the resource outlay and a timeline for various deliverables.
There are uncertainties that could not be predicted. For instance, poor weather that makes it difficult for the service provider to move to the client's physical residence. Another challenge is having a very ambitious and unrealistic plan.
Moreover, communication breakdown can also occur. There could be poor communication that results in misunderstanding between the two parties. This may in turn into the poor execution of a task or disagreement among team members. Another challenge is a lazy team member may derail the entire team. This is because they have to work jointly to execute the task. Therefore, the input of every team member counts.
Poor listening may also occur. The client may not listen when you speak resulting in misinterpretation of information. Lastly, prejudice can also occur. The client may have created a certain impression that clouds their interpretation of information that they receive. Therefore, it may adversely affect the way that they respond.