Final answer:
The financial statements on which the auditor's opinion is being expressed are specified in the Introduction paragraph of the auditor's report.
Step-by-step explanation:
In an auditor's report, the financial statements on which the opinion is being expressed are specified in the Introduction paragraph. This paragraph, present at the beginning of the report after any front matter, introduces the subject of the financial statements and is crucial for setting the foundation and expectations for the report's content and conclusions. Furthermore, the introductory paragraph often contains background information to inform the reader prior to delving into the deeper analysis provided in the body of the report.
The Scope paragraph typically follows the introduction and details the extent of the audit, outlining the methodology and work undertaken, while the Opinion paragraph contains the auditor's conclusions based on the audit. If necessary, an Explanatory paragraph may be included to discuss any additional matters not covered elsewhere that are relevant to the reader's understanding of the audit and financial statements.