Financial statements that have been examined by an independent auditor and accompanied by an audit opinion.
Audited financial statements are financial statements that have been examined by an independent auditor and issued with an audit opinion. The audit does not guarantee perfection, but it is intended to provide assurance that the statements are presented fairly within the applicable reporting framework.
These statements matter because outside users often place more confidence in results that have passed through an external audit process.
The statements themselves may look similar to unaudited statements, but audited financial statements are paired with:
audit procedures performed by an independent auditor
an audit opinion or audit report
testing directed at material misstatement risk
That external assurance layer is what distinguishes them.
The financial statement audit is the process.
Audited financial statements are the output users read after that process is completed.
Financial Statement: The underlying reporting statements being audited.
Financial Statement Audit: The audit process applied to the statement set.
Annual Report: A reporting package that often includes audited financial statements.