Monitoring is typically done by
A)shareholders only.
B)shareholders and the board of directors.
C)shareholders, the board of directors, and independent accountants.
D)shareholders, the board of directors, independent accountants, and lenders.

Question

Quizplus · Accepted Answer

Monitoring in a corporate setting involves various stakeholders to ensure that the company is managed effectively and in accordance with laws and regulations. Shareholders, the board of directors, and independent accountants play direct roles in monitoring the company's activities. Lenders also have a vested interest in monitoring the company to protect their investments and often impose covenants that require the company to meet certain financial metrics, which necessitates monitoring.

Monitoring Is Typically Done by