Choice "D" is correct. When a CPA examines projected financial statements, the standard report should include a statement that the examination "…included such procedures as we considered necessary to evaluate both the assumptions used by management and the preparation and presentation of the projection."
Choice "b" is incorrect. The accountant's report on the examination of projected financial statements would not explain the principal differences between historical and projected financial statements.
Choice "a" is incorrect. The accountant's report on the examination of projected financial statements would not make any reference to the CPA's auditor's report on the historical financial statements.
Choice "c" is incorrect. The accountant's report would not express an opinion on the client's ability to continue as a going concern.