Audited financials refer to financial statements that have been reviewed and certified by an independent auditor. The auditor’s job is to assess the accuracy and completeness of the financial statements and to express an opinion on whether they are presented fairly in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS).
Unaudited financials, on the other hand, are financial statements that have not been reviewed or certified by an independent auditor. These statements are typically prepared by the company’s management and are not subject to the same level of scrutiny as audited financials.
Audited financials are generally considered to be more reliable and trustworthy than unaudited financials, as they have undergone an independent review process. Companies are required to have their financial statements audited by an independent auditor if they are publicly traded or if they are required to do so by law or regulation. However, smaller private companies may choose to have their financial statements audited voluntarily.
