you can do a compression test without installing the engine. Hook up a battery to the starter and jump the solenoid with a screwdriver. Do dry and wet compression tests... dry compression will likely show low depending on how long the engine has sat unused. Drop an ounce of oil in the cylinders for the wet compression test, do the tests, write down the numbers and find out what the specs are. Without knowing compression numbers you don't truly know if it's worth all the trouble of installing the engine and attempting to clean it up.
On the other hand, I've bought many many used engines, and looking for sludge/neglect is one of the first things I do before I even think about reaching for my wallet.
What's the situation? Beater car? Customer car? Personal car that will be depended upon every day? May make a difference in the course of action. If this person is installing the engine for someone and getting paid to do so, I would not install this engine. Just asking for a headache.