i) Risk Management
Effective systems of risk management can be established through regulations.
ii) Internal Controls
A framework of internal controls can be established to enable the organisation to attain its stated objectives.
iii) Organizational Structures and Processes
It is important to have clearly defined duties and roles for specified public officials, a defined governance structure, accountability for funds, communication structure and safe guarding of assets, in order to prevent institutional failures.

The objectives of government regulatory and financial reporting framework should achieve the following:

• Show whether financial resources are obtained and spent in accordance with the national budget;
• Show whether the government overspent or under spent budgeted amounts and what changes necessitated those performances;
• Show whether control over commitments and obligations are effective and whether any challenges that exist are due to cash outlays or revenue inflows;
• Show whether financial flows may be determined or predicted;
• Evaluate the performance of the economy and state institutions.

New Environment:
i) Sometimes regulations designed to promote financial soundness and reporting may prevent desirable changes and interfere with the ability of the system to adapt itself to a new environment;

Outmoded Laws:
ii) Regulatory bodies are usually slow to redefine the purposes and financial structures of public institutions. As public entities seek to broaden their scope of operations they are often faced with legal constraints and outmoded laws and financial regulations

iii) Timeliness – Undue delays will make reports lose their relevance;

iv) Cost Benefit – Cost of providing information should not be more than the benefits;

v) Quality – Quality of reports should meet objectives of financial reports;

vi) Collusion – When public officers collude to misapply or misappropriate public funds and property the objectives of regulations are defeated;

vii) Corruption – This is one of the risk factors that undermine public institutions and destroy the goals of public entities, making the application of regulations ineffective.