A financial statement that has been examined by an independent auditor who has expressed an opinion on the financial statement based on an audit. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Audits are conducted in accordance with generally accepted auditing standards and are designed to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audited statement represents a higher level of accountant involvement than a review statement or a compilation statement. Outside investors and banks frequently require companies to obtain audited statements as a condition to an investment or a loan.