Pronunciation: [ʌnˈɔːdɪtɪd] (IPA) 
The word "unaudited" is spelled as "ʌnˈɔːdɪtɪd". This means that the first syllable is pronounced as "un", which rhymes with "fun", followed by "au" pronounced as the "o" sound in "north". The next syllable is pronounced as "dit", rhyming with "it", and the final syllable is pronounced as "ed", like the past tense of "embed". In business, "unaudited" refers to financial statements that have not been reviewed by an external auditor.
The term "unaudited" refers to a condition or state in which something, typically financial records, has not been officially examined or verified by a professional auditor. It denotes a lack of meticulous scrutiny or formal review by an authorized independent party. When financial statements, such as income statements, balance sheets, or cash flow statements, are labeled as "unaudited," it indicates that they have not undergone a comprehensive assessment of their accuracy, completeness, or compliance with relevant accounting standards.
The absence of an audit implies that the financial information provided has not been examined with the same level of thoroughness and assurance as audited statements. It should be noted that the absence of an audit does not imply that the information is misleading or false, but rather that it has not been subjected to the rigorous evaluation typically carried out by a certified public accountant or other qualified auditor.
Unaudited statements are more common in interim financial reports, where companies may release unaudited data for a specific period of time before the final annual audit. These statements serve as a preliminary overview of the company's financial position and performance, providing some transparency to stakeholders in a timelier manner. However, individuals relying on unaudited financial records should exercise caution and be aware that they may not carry the same level of reliability and credibility as audited statements.
The word "unaudited" is derived from the combination of the prefix "un-" (meaning "not") and the past participle form of the verb "audit". The term "audit" dates back to the early 15th century, derived from the Latin word "audire" meaning "to hear". Initially, it referred to a formal examination or hearing by authorities to ensure that financial accounts were accurate and reliable. Over time, it evolved to denote the process of systematically reviewing and evaluating records, statements, or systems for verification and accuracy, particularly in the context of financial auditing. The addition of the prefix "un-" negates the verb "audit", indicating that something has not undergone an audit or has not been reviewed and verified.
