A company cheque for payment must be signed by:
A)a person specifically authorised by the company.
B)the external auditor.
C)a bank employee.
D)any employee of the company.

Question

Quizplus · Accepted Answer

A company cheque can only be signed by a person who has the specific authorization to do so. This person is usually designated by the company's board of directors or management, and the signature is a representation of the company's consent and agreement to make the payment. Signing the cheque requires the authority to handle the company's finances and the responsibility to ensure that the payment is valid and accurate. Therefore, only a person who has been granted such authority can sign a company cheque. The external auditor may audit the company's financial statements but has no authority to sign company cheques. A bank employee or any employee of the company may not sign the cheque without proper authorization.

A Company Cheque for Payment Must Be Signed By