Choice "c" is correct. The auditor's standard audit report includes a statement that "An audit includes

assessing...significant estimates made by management..."

Choice "a" is incorrect. The standard audit report does not state that disclosures provide reasonable

assurance that the financial statements are free of material misstatement. The correct statement is:

"...standards require that we plan and perform the audit to obtain reasonable assurance that the

financial statements are free of material misstatement."

Choice "b" is incorrect. The standard audit report does not state that the auditor evaluated the

overall internal control. The correct statement is "An audit includes...evaluating the overall financial

statement presentation." Internal control is not mentioned in the standard audit report.

Choice "d" is incorrect. The standard audit report does not state "The financial statements are

consistent with those of the prior period." According to the second standard of reporting, consistency

is implicitly reported. Only if there is an inconsistency is an explicit statement included.