When an auditor reports on financial statements prepared on an entity's income tax basis, the auditor's report should:

Disclose that the income tax basis is an accounting basis other than generally accepted accounting principles.

Dismiss an opinion on whether the statements were examined in accordance with generally accepted auditing standards.

Do not express an opinion on whether the statements are presented in accordance with the basis of accounting used.

Include an explanation of how the results of operations differ from the cash receipts and disbursements basis of accounting.