Choice "B" is correct. When information accompanying the basic financial statements has been subjected to auditing procedures, the auditor may include in the auditor's report an opinion that the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. This statement would appear in an other-matter paragraph following the opinion paragraph. The information may be included in a separate report instead of the opinion report.
Choice "c" is incorrect. Information accompanying the basic financial statements is not stated in an auditor's report to be in accordance with GAAS. Instead, the auditor would state that the "information has been subjected to the auditing procedures applied in the audit of the financial statements..."
Choice "d" is incorrect. The auditor would not state that information accompanying the basic financial statements was fairly stated in accordance with GAAP. The information in an ASD is in addition to that required by GAAP.
Choice "a" is incorrect. Attestation standards do not apply to this engagement.