The COSO internal control framework seeks to ensure that management's operations, reporting, and compliance objectives will be achieved. Which of the following correctly describes reporting objectives of the framework?

Reporting objectives do not address internal financial or nonfinancial reports issued for use by management.

External nonfinancial reporting objectives usually relate to MD&A and similar written narratives.

Reporting objectives relate to the preparation of financial and nonfinancial reports issued for use by shareholders and the entity.

External financial reporting objectives address mainly regulatory or contractual requirements.