Find the part of the sentence that contains an error:
The investigation’s findings, alarming in both scope and content, (1)/ prompted responses not just from the agencies concerned (2)/ but also from the auditors who report they (3)/ were never granted access to critical records. (4)

Correct option is C

Option (3) contains an error.
Detailed explanation of error: The clause “the auditors who report they were never granted…” is grammatically faulty because after “report”, the sentence needs a proper object clause introduced by that (or a clear reporting structure).
The phrase “report they were…” is informal/awkward and is treated as incorrect in formal error-spotting.
A correct formal structure would be: “auditors who report that they were never granted access…”
Grammatical rule used: Verb + that-clause (Reported statement structure)
· Reporting verbs like report/claim/state/say typically take that + clause in formal English.
· Example: The witnesses reported that the door was locked.