McAuley, a former Scunthorpe defender, stepped up from youth team coach at Hillsbrough after Paul Sturrock was sacked, before handing over to Laws from Monday.
He has overseen a revival of the Owls' fortunes, culminating in Saturday's 2-1 win over Leicester City.
During his four games in charge the Yorkshire side have dropped just two points - with a draw at Wolves punctuating wins over Queens Park Rangers, Crystal Palace and the Foxes.
And McAuley reckons Saturday's success, courtesy of goals from Marcus Tudgay and Deon Burton, proves Laws will inherit a strong side.
"The performance was very good, and I'm very pleased. We created a few chances and defended well, we looked to have a lot of energy," he said.
"We're getting a run together, and it's good for the players.
"I see that type of play in training every day, they've got a belief in themselves."