XYZ company, CPAs were approached to report on summary financial statements. The summary financial statements were prepared on a tax basis whereas the complete financial statements were prepared using Generally Accepted Accounting Principles.

(a) The company may perform the engagement because the tax basis is an acceptable other comprehensive basis of accounting.

(b) The company may perform the engagement if the company obtained the proper management representation letter which includes the requirement to notify the auditor of any subsequent events that occurred.

(c) The company may not perform the engagement.