Audited Financial Statements

Audited Financial Statements are a company’s financial statements prepared and certified by a certified public accountant as meeting the requirements of U.S. General Accepted Accounting Principals. In contrast, “Reviewed Financial Statements” have been reviewed by an accounting firm but that review is not nearly as thorough as is made in connection with an audit. Think of a spectrum in which audited financial statements are the most reliable and reviewed financial statements are the next most reliable. Less reliable are “Compiled Financial Statements,” which are created by an accountant from statements prepared by its client.