How stakeholders and agencies external to a corporation control or influence those responsible for directing and managing the affairs of the corporation is best described as:
A) internal control.
B) internal auditing.
C) external auditing.
D) corporate governance.

Question

Quizplus · Accepted Answer

The description given in the question pertains to the concept of corporate governance, which involves external stakeholders and agencies controlling or influencing the actions of those within a corporation who are tasked with directing and managing its affairs. Internal control and auditing, on the other hand, refer to the measures taken by a company to ensure its operations are efficient, effective and compliant with laws and regulations. External auditing involves an independent examination of a company's financial statements by a third party, while the question does not specifically pertain to this type of audit. Therefore, the best answer is D - corporate governance.

How Stakeholders and Agencies External to a Corporation Control or Influence