Choice "D" is correct. When an accountant accepts a compilation engagement, he or she should indicate that it is limited in scope and would not include an opinion or assurance on the projected financial statements or the related assumptions. Choice "a" is incorrect. A projection may be included in a document with audited historical financial statements. The compilation report would also be included with the document to make clear the that the accountant provides no opinion or any other form of assurance. Choice "c" is incorrect. Updating the projection is the responsibility of company management, not the accountant. The compilation report specifically states that the accountant has no responsibility to update the report for events and circumstances occurring after the date of the report. Choice "b" is incorrect.  A projection is based on hypothetical assumptions.