Choice "C" is correct. A description of how the income tax basis differs from GAAP should be included in the notes to the financial statements.Choice "b" is incorrect. The auditor's engagement letter may discuss that the financial statements are prepared on the income tax basis. However, it is unlikely that the engagement letter would include a description of how that basis differs from GAAP.Choice "d" is incorrect. The management representation letter would likely include management's acknowledgement of their responsibility for the fair presentation of the financial statements in accordance with the applicable financial reporting framework. However, it is unlikely that the management representation letter would include a description of how that basis differs from GAAP.Choice "a" is incorrect. The introductory paragraph of the auditor's report identifies the financial statements audited, but does not include a description of how the other comprehensive basis of accounting differs from GAAP.