An audit conducted in accordance with PSAs and relevant ethical requirements enables the auditor to form that opinion.Select one:TrueFalse

The statement can be evaluated based on the principles of auditing standards. An audit conducted in accordance with Philippine Standards on Auditing (PSAs) and relevant ethical requirements ensures that the auditor follows a systematic and objective process. This adherence allows the auditor to gather sufficient appropriate audit evidence, which is crucial for forming an opinion about the financial statements.

1. Understanding PSAs: PSAs provide guidelines for conducting audits, ensuring that auditors act with integrity, objectivity, and independence. These standards are designed to enhance the quality and reliability of the audit process.

2. Role of Ethical Requirements: Ethical requirements complement PSAs by ensuring that auditors maintain high ethical standards, which include professional competence, confidentiality, and professional behavior throughout the audit process.

3. Forming an Opinion: By following PSAs and ethical guidelines, auditors can assess the accuracy, completeness, and validity of the financial statements, allowing them to form a well-informed opinion about the financial position and performance of the entity being audited.

Therefore, the correct answer to the question is True. An audit conducted under these standards indeed enables the auditor to form an opinion.