Choice "C" is correct. Since only single-year financial statements are presented, the fact that another CPA audited the prior year's financial statements is not relevant. Therefore, the auditor would express an unmodified opinion.
Choice "a" is incorrect. The situation described would result in a qualified opinion or disclaimer of opinion due to a scope limitation.
Choice "b" is incorrect. The situation described would result in an qualified opinion due to inadequate disclosure.
Choice "d" is incorrect. The situation described would result in an unmodified opinion with an emphasis-of-matter paragraph added after the opinion paragraph.