Describe the essential contents of the "Basis for Opinion" section in an auditor's report and explain why this section is important as per the…

SA 700 (Revised), "Forming an Opinion and Reporting on Financial Statements", requires that the auditor's report shall include a section, directly following the Opinion section, with the heading “Basis for Opinion", that: (i) States that the audit was conducted in accordance with Standards on Auditing; (ii) Refers to the section of the auditor's report that describes the auditor's responsibilities under the SAs; (iii) Includes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit and has fulfilled the auditor's other ethical responsibilities in accordance with these requirements. (iv) States whether the auditor believes that the audit evidence the auditor has obtained is sufficient and appropriate to provide a basis for the auditor's opinion. Thus, the Basis for opinion section provides important context about the auditor's opinion.