Final answer:
An accountant's report on projected financial statements should include a statement that the projected results may not be achieved (option D), acknowledging the inherent uncertainties in such projections. It is also important to understand the distinctions among compilation, review, and audit services.
Step-by-step explanation:
When an accountant compiles projected financial statements, the accountant's report should not include an expression of limited assurance that actual results may be within the projected range nor an assessment of the material misstatement due to fraud. Rather, the report should include a disclaimer that the projected results are based on management's assumptions and may not be achieved.
In line with this, the proper response to the student's query is option D) A statement that the projected results may not be achieved. This serves to inform all users of the financial statements that the actual outcomes may differ from those projected, due to any number of risks and uncertainties inherent in making forward-looking statements.
Moreover, it is important for users of these financial statements to understand the difference between a compilation, a review, and an audit. A compilation involves assembling data into financial statements based on information provided by the client, without providing any assurance, whereas a review is more involved and does include some level of assurance. An audit is a comprehensive examination providing a high level of assurance that the financial statements are free of material misstatement.