Unaudited

Unaudited refers to financial statements or other reports that have not been examined by an independent auditor. Such statements are typically prepared by management, often with internal accounting staff, and have not received external assurance regarding their accuracy, completeness, or conformity with applicable accounting standards.

In practice, unaudited statements are common for interim periods, smaller businesses, or early-stage companies. Depending on jurisdiction, quarterly results may be released without an audit, while annual statements are often audited. Public companies may issue unaudited quarterly reports and later publish audited annual statements. The level of required or expected assurance varies by country and regulatory regime.

Implications of an unaudited designation include a lower degree of assurance about the information presented. Readers should treat unaudited results as preliminary and subject to change after a subsequent review or audit. Management estimates, judgments, and internal controls may be less scrutinized, increasing the risk of misstatements or bias. Disclosures accompanying unaudited statements often advise that the information should not be relied upon as if it had been audited.

Alternatives to unaudited statements include reviewed and compiled engagements. A review provides limited assurance, more than a compilation but less than an audit, while a full audit involves independent testing of records and controls and results in an audit opinion. The presence or absence of an audit affects perceived reliability and risk for investors, lenders, and other stakeholders.