An unaudited statement is a financial statement that has been prepared by an auditor, but for which a standard set of audit procedures have not been performed. In effect, the auditor has engaged in accounting services to prepare the statement, but not auditing services to examine the validity of the statement. Accordingly, the auditor must issue a disclaimer statement, specifically pointing out that he is not issuing an opinion on the statement. In addition, the statement must be labeled as unaudited. Being unaudited, this type of financial statement is more likely to contain errors.
An unaudited statement can also refer to a financial statement that was developed internally, but was not subjected to examination by an outside auditor.