Management typically has the following three concerns, or broad objectives, in designing an effective control system:
1)reliability of financial reporting
2)efficient and effective operations
3)compliance with applicable laws and regulations
4)maximise profit for stakeholders
A) 1, 2, 4
B) 2, 3, 4
C) 1, 3, 4
D) 1, 2, 3

Question

Quizplus · Accepted Answer

The three concerns listed in the question are reliability of financial reporting, efficient and effective operations, and compliance with applicable laws and regulations. Maximizing profit for stakeholders is not explicitly stated as a concern in the question. Therefore, the best choice is 1, 2, and 3 (D).

Management Typically Has the Following Three Concerns, or Broad Objectives