Choice "D" is correct. A compilation of prospective financial statements is not intended to provide assurance on the prospective financial statements or the assumptions underlying such statements.
Choice "b" is incorrect. The report on a compilation should include a statement that a compilation is limited in scope.
Choice "c" is incorrect. The report on a compilation should include a statement that the accountant assumes no responsibility to update the report for events subsequent to the report date.
Choice "a" is incorrect. The report on a compilation should include a separate paragraph that describes the limitations on the presentation's usefulness.