Choice "D" is correct. An auditor may report on summary financial statements that are derived from financial statements that he or she has audited, indicating (1) that he or she has audited and expressed an opinion on the complete financial statements, (2) the date of the auditor's report, (3) the type of opinion expressed, and (4) that the information contained in the summary financial statements is fairly stated in all material respects in relation to the complete financial statements from which it has been derived.
Choice "b" is incorrect. The summary financial statements do not have to be distributed to the stockholders.
Choice "a" is incorrect. The audit report on summary financial statements does not require that additional procedures be described.
Choice "c" is incorrect. Summary financial statements do not need to be presented in comparative form with the prior year's financial statements.