Which statement best describes the function of a firm’s policy on delegation of authority and sign-off?

• A. It prescribes dress code.
• B. It defines who may sign off on deliverables and to what extent.
• C. It replaces existing contracts.
• D. It sets pricing policy.

Answer: (B)

Delegation of authority and sign-off policies define who may approve deliverables and the level of approval required. This matters because it establishes clear decision rights and accountability, ensuring the right people review work and that approvals match its significance or risk, with defined thresholds and escalation if needed. The best statement describes this scope precisely—who can sign off on deliverables and to what extent. Other options touch on dress code, contract changes, or pricing decisions, which are unrelated to who approves work or the scope of authorization. A formal policy like this reduces risk, keeps projects moving smoothly, and makes responsibilities clear across the organization.