Audit Log and Custom Report configuration questions and recommendations

I want to set up auditing on my dev SP farm and need to know if this is set up properly, plus if there were recommendations for a better configuration. The proof of concept is as follows:

in Run a Custom Report > Customize:

• Automatically trim the audit log for the site? Yes
• Location: Restrict this report to /apps/salaries/list
• Date Range: 6/1/2015 - 6/15/2015
• Users: none specified, want to see all users
• Events: all checked

Current Audit settings: I'm having a little trouble understanding some of these. Does this mean that every 60 days, a log file will be created in /AnalyticsReports containing the previous 60 days of log information? So if I wanted to generate a Custom Report on user action data from ~90 days ago (as in the example above), would that logging data be accessed by the Custom Report's query?

• Automatically trim the audit log for the site? Yes
• Number of days of audit log data to retain: 60
• Location to store audit reports before trimming audit log: /AnalyticsReports
• Documents and Items: all are selected
• List LIbraries and Sites: all

Thanks in advance,

Scott