What documents establish the RME's authority?

• A. The firm’s policy on delegation of authority and sign-off.
• B. The professional services agreement, engagement letters, and a firm’s policy on delegation of authority and sign-off.
• C. A standard project memo.
• D. All internal emails.

Answer: (B)

Authority to act for the RME comes from formal, documented agreements that spell out who can sign, approve, and bind the firm and its clients. The professional services agreement lays out the relationship with the client, the scope of work, and who is authorized to sign on behalf of the firm and the client, creating a clear external authority. Enga​gement letters specify the particular project, its objectives, and the designated signatories for that engagement, tying authority to a concrete assignment. The firm’s policy on delegation of authority and sign-off defines internal limits, approval thresholds, and escalation steps, ensuring there is a consistent, auditable framework for who can authorize actions and expenditures. Put together, these documents provide both the external contractual basis and the internal governance needed to establish real authority for the RME. Relying on a standard project memo or internal emails, by contrast, does not establish or bind authority in the same formal way, since they are communications rather than binding agreements or governance rules.