The spelling of "smug report" can be explained using the International Phonetic Alphabet (IPA). The word "smug" is pronounced as /smʌɡ/, with the vowel sound represented by the symbol 'ʌ' and the consonants 's' and 'ɡ'. The word "report" is pronounced as /rɪˈpɔːt/, with the stressed syllable represented by the symbol 'ˈɔː', the vowel sound represented by the symbol 'ɪ' and the consonants 'r', 'p', and 't'. Therefore, the spelling of "smug report" accurately reflects its phonetic transcription.