They are fundamental principles assumed to be truths which help to explain the social purpose of Auditing and / or audit practice.
That depends of the laws of the country in which the company is registered. As you have not specified this in your question we can not provide you with a precise answer. Please take care to make your questions precise.
A draft audited accounts: When the external auditors of a company have finished the audt of the company, a draft accounts will usually be prepared. It is called a draft because it is still subject to "alteration" as it has not been finalised. An external auditor will have to sign a fully audited accounts but will not append such signature unless the accounts is finalised in all aspects. So, we may say a draft audited accounts is an accounts already audited by the external auditors but which is still subject to alterations and will eventually become a final audited accounts onces all alterations have been effected and the accounts signed by both the external auditors and the board of directors of the company.