7.PPS Managing Engagements

1. Introduction

Membership of the ABRT is personal to an individual Restructuring & Turnaround Practitioner. ABRT Members have an obligation to ensure that engagements [1] are effectively managed, controlled and administered at all times.

Issues can arise when an ABRT Member is working as part of a turnaround team [2], takes engagements jointly or delegates work to employees or contractors. In such circumstances, the ABRT Member’s planning and administrative arrangements will need to consider how best to ensure that engagements are properly managed and controlled at all times, and that proper regard is paid to the interests of the client and other affected parties.

2. Delegation

Given there is a wide variation in the size of an ABRT Member’s firm [3], each will have a different caseload that is likely to fluctuate. Access to resources will also be highly variable for individual ABRT Members. This creates different requirements in the delegation of work to ensure adequate management and progression of engagements for the client.

Delegation includes:

For each of the above examples (and in other circumstances where delegation takes place), the ABRT Member must be satisfied at all times that work is being carried out in a proper and efficient manner, appropriate to the engagement and the satisfaction of the client.

3. Management

In determining the procedures to be put in place to ensure the appropriate level of management, control and progression of engagements when delegating work, it is recommended that an ABRT Member have regard to the following:

ABRT Members should be aware that they may be required to justify their decisions and demonstrate they put in place appropriate levels of control to effectively manage engagements.

Depending on the nature, size and complexity of an engagement, ABRT Members should consider documenting procedures that set out guidance for the client’s engagement and have this agreed in writing on a case by case basis. ABRT Members are expected to prepare their own contemporaneous working papers, file notes and Client Advisory Record [7] on client engagements.

Should you require additional guidance on this PPS or have feedback, please email peakpps@abrt.org.au.

Version 1.3 – Maintained 18.08.20 


[1] An ABRT Member’s formally agreed client engagement terms.

[2] Depending on the nature of an organisation’s industry, and the size and complexity of the situation,  may be more appropriate for directors to engage a ‘turnaround team’ – multiple advisers, all tasked with assisting in specific areas, and whose advice collectively inform the decisions of the board (and do not conflict with advice the director may wish to receive on a personal level).

[3] Reference to ‘firm’ includes, as appropriate, a company, a partnership, a sole practitioner, and a practitioner working in association with other ‘firms’ or practitioners in other ‘firms’.

[4] This could include (but is not limited to) matters requiring input from accountants, solicitors, taxation agents, independent valuers, insolvency practitioners or industry experts).

[5] See 9.PPS – Dealing with Complaints.

[6] See 8.PPS – Succession Planning.

[7] See 4.PPS – Client Advisory Record.