Choice "C" is correct. The auditor should report whether the information in the summary financial statements is fairly stated, in all material respects, in relation to the financial statements from which it has been derived.
Choice "a" is incorrect. Summary financial statements do not include all of the disclosures required by GAAP, and therefore would not typically be presented in conformity with GAAP.
Choice "b" is incorrect. Summary financial statements are presented in less detail than complete financial statements, but the fact pattern gives no indication that any comprehensive basis of accounting other than GAAP has been used.
Choice "d" is incorrect. The auditor should report whether the information in the summary financial statements is fairly stated, in all material respects, in relation to the financial statements from which it has been derived, not in relation to supplementary filings under federal security statutes.