Matrix management uses dual reporting relationships, often combining functional and project, product, or geographic lines. Its main purpose is to increase lateral communication, coordination, and resource sharing across organizational boundaries. It is useful when work requires cross-functional expertise and rapid information flow. Option A is incorrect because matrix structures usually complicate the chain of command rather than simplify it. Option B is not the primary objective; matrix structures may actually distribute authority across functions and projects. Option C is too narrow because focusing on a single market is more consistent with product, customer, or geographic structures. Internal auditors should recognize that matrix structures can improve collaboration but may also create accountability ambiguity, conflict, and control ownership issues. Therefore, Option D is correct.