Detailed Answer
(a) The requirement is to determine the accounting
principles that an issuer (public) company audit report refers to.
Answer (a) is correct because the financial statements follow
generally accepted accounting principles. Answer (b) is incorrect
because, while the audit is performed in accordance with PCAOB
standards, the financial statements do not follow those standards.
Answer (c) is incorrect because the financial statements do not
follow generally accepted auditing standards. Answer (d) is incorrect
because the financial statements ordinarily follow generally
accepted accounting principles, not International Accounting
Standards.