Unaudited Financial Statements

Many companies prepare financial statements that are not audited. Interim results, such as quarterly reports, are usually unaudited, though listed companies' quarterly statements in some countries are reviewed by auditors, which is a more limited check. Small private companies are often exempt from audits altogether.

Unaudited statements may still be accurate, and management remains responsible for them. But readers have less assurance, because no independent party has tested the figures.

For example, a small business seeking a loan might provide unaudited accounts prepared by its accountant. The bank may accept them for a small loan but require audited or reviewed statements for a larger one.

When unaudited statements are published alongside audited ones, they are usually clearly labelled as unaudited. Investors and lenders often place more weight on audited figures, especially when making large decisions, and may ask for additional evidence when relying on unaudited information.