Choice "C" is correct. The reporting accountant's report on the application of the requirements of an applicable financial reporting framework should include a statement that should any facts or circumstances differ from those presented to the reporting accountant, the accountant's report may change.
Choice "b" is incorrect. The report should state that the engagement was performed in accordance with "AICPA Standards," not statements on Standards for Consulting Services.
Choice "a" 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 should consult with the entity's continuing accountant.
Choice "d" is incorrect. The report does not provide negative assurance with respect to GAAP; rather, it may describe the applicable financial reporting framework to be applied.