Auditor as Guarantor / insurance provider?

Scenario:

Your neighbor Jim invited you to lunch yesterday. He knew previously that you are taking Auditing and Assurance course at De Anza College. Sure enough, it was no "free lunch" because Jim wanted to discuss the annual report of Foothill Corporation. He owns Foothill stock and just received the annual report. Jim says, "our auditors prepared the audited financial statements and gave an Unqualified opinion, so my investment must be safe."

Required discussion question:

What misconceptions does Jim seem to have about the auditor's role with respect to Foothill Corporation?