Final answer:
In the auditor's report, the paragraph relating to financial statements based on tax accounting should provide an assurance about their accuracy, which is a key part of the opinion section of the report.
Step-by-step explanation:
When reporting on the financial statements prepared on the basis of accounting used for income tax purposes, the auditor should include in the report a paragraph that provides an opinion on the accuracy of the financial statements. This is an essential element of the auditor's report as it delivers an assurance to the users of the financial statements regarding their reliability. It is important to note that while explaining the differences between the accounting used for income tax purposes and the accounting used for financial reporting purposes may provide valuable context, it is not the auditor's role to include this as a dedicated paragraph in the auditor's report. Summarizing the auditor's findings and recommendations and disclosing any material weaknesses in internal controls are parts of different sections of an audit report and do not directly correspond to the auditor's opinion on the accuracy of the financial statements.