What are the AICPA's fundamental principles?

Answer 1

In place of the ten historical standards that governed the auditing profession, as part of the clarity project the AICPA developed seven fundamental principles that govern audits. The four categories, with their specific principles, are:
Purpose of an Audit and Premise upon Which an Audit Is Conducted
1 . The purpose of an audit is to enhance the degree of confidence that users can place in the financial statement. This purpose is achieved when an auditor expresses an opinion on the financial statements.
2 . An audit is based on the premise that management has responsibility to prepare the financial statements, maintain internal control over financial reporting, and provide the auditor with relevant information and access to personnel.
Responsibilities
3 . Auditors are responsible for having the appropriate competence and capabilities to perform the audit, should comply with ethical requirements, and maintain professional skepticism throughout the audit.
Performance
4 . The auditor needs to obtain reasonable assurance as to whether the financial statements are free from material misstatement.
5 . Obtaining reasonable assurance requires the auditor to plan and supervise the work, determine materiality levels, identify risks of material misstatement, and design and implement appropriate audit responses to the assessed risks.
6 . An audit has inherent limitations such that the auditor is not able to obtain absolute assurance about whether the financial statements are free from misstatement.
Reporting
7 . The auditor expresses an opinion as to whether the financial statements are free of material misstatement or states that an opinion cannot be
expressed.