Compilation of unaudited Financial Statements Difference B/w Audited & Unaudited Financial Statements
Contents
What is Audited Financial statements?
What is Unaudited Financial statements?
Why Audited Financial Statements?
The Audit Process
Summary
What is Audited Financial statements? ď‚ą
A financial statements or report is called audited, when it is prepared in accord with generally accepted accounting principles guidelines. As we know in Singapore all companies have to provide their financial reports in which cash flow statements, balance sheet and income statements are included.
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There is a guarantee and accuracy in the audited financial statements that’s why it is also known as certified financial statements.
What is Unaudited Financial statements? ď‚ą
Unaudited financial statements or reports are just opposite from the audited. In this type of statement's there is lack of certification and accuracy, this is totally an independent verification and audit process.
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The financial statements of any company remains unaudited until it is checked and verified through an external certified auditor.
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Unaudited statements are also referred to as Compiled financial statements.
Why Audited Financial Statements?
There are various reasons for having an audited financial statements for any company in Singapore.
According to ACRA, for transparency it is important for any business entity to submit their financial reports annually that offers stocks and bonds to the public.
Also, there are many other compelling reasons. An audited financial report:
Ensures accountability
Provide reliability
Boost company credit rating Growth of business value.
The Audit Process
The auditing process of financial statements for any business or company requires three fundamental things:
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A team of Expert and professional auditors
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Split up work
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Timing The Audit process work on the following basis: Observation Inventory counting Shipping procedures
Summary I hope you got your answer and clearly understand the basic difference b/w audited and unaudited financial statements. If you have any question or want to know more about the compilation of unaudited financial statements, Visit our Website: https://www.singaporeaccountingservice.com/services/compilation-of-financial-statements-unaudited-financial-statements/
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