Choice "A" is correct. When reporting on the application of the requirements of an applicable financial reporting framework to a specific transaction, the CPA should include in his or her report a statement that the preparers of the financial statements, who should consult with their continuing accountants, bear the ultimate responsibility for proper accounting treatment.
Choice "b" is incorrect. The report should state that the engagement was performed in accordance with "AICPA Standards," not SSARS.
Choice "c" is incorrect. The report does not make reference to "opinion-shopping," nor does it state that the evaluation is hypothetical.
Choice "d" is incorrect. The report's use is restricted to "specified parties," which may include parties other than management (e.g., the board of directors). Also, the preparers of the financial statements and the reporting accountant should consult with the entity's continuing accountant.