Choice "D" is correct. The regular evaluation of employees for their competence in financial reporting is an important link between human resources policies and the achievement of financial reporting objectives.
Choice "a" is incorrect. Management's operating style relates more to work ethic and commitment to effective financial reporting than the recruitment, retention, and evaluation of employees.
Choice "b" is incorrect. Appropriate delegation relates to the organization's assignment of duties rather than to the recruitment, retention, and evaluation of employees.
Choice "c" is incorrect. The organizational structure principle typically involves the appropriate alignment of reporting relationships to ensure that controls are not undermined (e.g., internal auditors should not report to the CFO) rather than to the recruitment, retention and evaluation of employees.