An auditor is preparing a report on the audit of a nonissuer's financial statements prepared in accordance with the Cash Basis of accounting (a special purpose framework). Which of the following is a required element of the auditor's report?

An adverse opinion stating the statements are not in accordance with GAAP.

An emphasis-of-matter paragraph alerting readers that the financial statements are prepared in accordance with a special purpose framework.

A restriction on the use of the report to management and the board.

A qualified opinion due to the omission of accruals.