Unaudited Statement

An unaudited statement is something an auditor prepares or assists in preparing but does not examine in accordance with GAAS. All public companies have to provide public statements. It’s just how the law works.

Unaudited statements are not audited adequately and therefore, the quality of the financial statements isn’t guaranteed. This is compared to certified financial statements that having a financial institution backing them up. Accountants who put together your financial statements are not required to verify or confirm the records or analyze the statements for accuracy. However, if they see something that looks fishy, they have to notify management or else they have to stop working with the company.

 

EXAMPLE:

I took one look at their unaudited statement and walked right out the door. I ain’t touching that mess.