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Audited Account

An audited account is a financial statement that has been reviewed and verified by an independent auditor. The auditor checks to make sure the financial statements are accurate and follow accounting standards. This process gives confidence to investors, shareholders, and regulators that the company's financial health is reported correctly.

Example

A company’s annual financial report, including its income statement and balance sheet, might be audited by an outside accounting firm to ensure everything is accurate and trustworthy.

Key points

• Provides assurance that financial statements are accurate.

• Reviewed by an independent auditor.

• Important for building trust with investors and stakeholders.

Quick Answers to Curious Questions

An audited account has been independently verified for accuracy, while an unaudited account hasn’t undergone this review, making the latter less reliable.

Audited accounts help build trust with investors and regulators, showing that the company’s financial statements are accurate and reliable.

An independent auditor, typically from an outside accounting firm, is hired to perform the audit and verify the financial statements.