Choice "C" is correct. When issuing a report on the application of the requirements of an applicable financial reporting framework to a specific transaction, the reporting CPA should consult with the continuing CPA to obtain information relevant to the transaction. If the reporting accountant decides it is unnecessary to consult with the continuing accountant, then he or she must document the reasons for not consulting.
Choice "b" is incorrect. The reporting CPA has no obligation to report the engagement's findings to the continuing CPA. Generally, the report would be addressed to the requesting party (e.g., management, the board of directors, etc.).
Choice "d" is incorrect. There is no disclaimer in the report; however, the CPA does state that the preparers of the financial statements are responsible for proper accounting treatment.
Choice "a" is incorrect. Use of the report is restricted to specified parties.