Implement a flat structure with minimal management groups, relying heavily on individual resource policies for access control and auditing, which may simplify initial setup but could complicate scalability and compliance management.

Design a deep hierarchy with multiple levels of management groups to strictly enforce access controls, and utilize Azure Policy extensively for auditing, potentially increasing complexity and management overhead.

Focus exclusively on resource groups and subscriptions for access control and auditing, disregarding management groups, which may limit the ability to enforce policies uniformly across the organization.

Adopt a balanced approach with a moderate number of management groups to organize subscriptions and resources logically, complemented by well-defined Azure Policies for access control and auditing, ensuring scalability and compliance without unnecessary complexity.