Final answer:
An auditor's report contains an opinion about the fairness of the financial statements and may include an unqualified opinion if the financial statements are presented fairly. It does not include detailed financial operational data, which is found within the financial statements themselves.
Step-by-step explanation:
The auditor's report primarily contains an opinion on the fairness of the financial statements, which refers to whether the financial statements are presented in accordance with an applicable financial reporting framework and whether they accurately represent the company's financial position and performance. Option 3, an unqualified opinion, means the auditor has concluded that the financial statements are presented fairly. However, an auditor's report does not typically contain detailed coverage of the firm's liquidity, capital resources, and operations, nor the results of operations, as these are included within the financial statements and management's discussion and analysis section.
It's important to distinguish fact from opinion when analyzing an audit report; the auditor's opinion is based on evidence and facts gathered during the audit. The report should be free of bias and focus on the critical reporting structure to address the what, when, where, why, and how pertaining to the financial statements' accuracy.The auditor's report contains several key pieces of information:An opinion as to the fairness of the financial statements.The auditor evaluates the financial statements and expresses their opinion on whether they are presented fairly.While the auditor may provide an overview of the firm's liquidity, capital resources, and operations, this information is typically not found in the auditor's report. Instead, it is typically included in management's discussion and analysis or financial highlights sections of the company's annual report.