Choice "C" is correct. The report options for financial statements prepared for use in a foreign country depend upon the intended distribution. The auditor should therefore obtain written representations from management regarding the purpose and uses of the financial statements.
Choice "d" is incorrect. The auditor need not disclaim an opinion, but would either use a modified U.S. style report (distributed outside the U.S. only) or a standard U.S. report with an emphasis-of-matter paragraph that identifies the financial reporting framework (distributed within the U.S.)
Choice "b" is incorrect. The auditor is not required to receive a waiver from the other country.
Choice "a" is incorrect. The auditor is not required to communicate with the auditor of the non-U.S. parent.