Choice "C" is correct. Compiled financial statements should be accompanied by a report stating that the compilation was conducted in accordance with SSARS issued by the AICPA.
Choice "b" is incorrect. An audit, not a compilation, includes assessing the accounting principles used and significant management estimates, as well as evaluating the overall financial statement presentation.
Choice "a" is incorrect. A review report, not a compilation report, includes the phrase, "is substantially less in scope than an audit."
Choice "d" is incorrect. The accountant expresses no such assurance in a compilation engagement; limited assurance (i.e., "…accountant is not aware of…") is expressed in a review engagement.