State whether each of the following is or is not a principle (or a portion of a principle) underlying an audit conducted in accordance with Generally Accepted Auditing Standards.
Principles Yes (Y) or No (N)
1. The purpose of an audit is to provide financial statement users with an opinion by the auditors on whether the financial statements are presented fairly, in all material and immaterial respects, in accordance with the applicable financial reporting framework.
2. The auditors are responsible for having appropriate competence and capabilities to perform the audit.
3. The auditors are unable to obtain absolute assurance that the financial statements are free from material misstatement.
4. The opinion states whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.
5. Inherent limitations of an audit include the need to conduct an audit to achieve a balance between the benefit to management and the benefit to the auditors.