Choice "A" is correct. When reporting on financial statements prepared in conformity with a basis of accounting other than GAAP, the auditor should include an emphasis-of-matter paragraph that states that the special purpose framework is a basis of accounting other than GAAP.
Choice "c" is incorrect. The statements would be examined in accordance with GAAS; however, no opinion (or disclaimer) is given regarding this fact.
Choice "d" is incorrect. The auditor should express an opinion on the financial statements' conformity with the comprehensive basis other than GAAP.
Choice "b" is incorrect. The auditor would include a statement indicating that the basis differs from GAAP, but need not quantify the differences among various bases of accounting.
