Choice "C" is correct. Basic elements of a report on compliance include a statement that the audit should be planned to obtain reasonable assurance about whether noncompliance could have a material effect on the programs audited.
Choice "d" is incorrect. It is not necessary to describe the laws and regulations with which the entity must comply.
Choice "a" is incorrect. The objective of the audit of the financial statements is not to provide an opinion on overall compliance with laws and regulations.
Choice "b" is incorrect. The report should specifically state that a compliance audit does not provide a legal determination of the entity's compliance.