Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Tutoring
  • Home
  • Accounting, Taxation, and Reporting
  • Managerial & Financial Accounting & Reporting

Certified Financial Statement - Explained

What is a Certified Financial Statement?

Written by Jason Gordon

Updated at April 7th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is a Certified Financial Statement?How is a Certified Financial Statement Used?

What is a Certified Financial Statement?

A certified financial statement is a financial statement that has been audited and approved by an independent auditor. After a company prepares its income statement, cash flow statement and balance sheet, they are presented to a certified auditor who examines the financial statement to be sure they are accurate and void of errors. A financial account that has been reviewed and signed by this independent accountant or auditor is called a certified financial statement. Certified financial statements are reliable documents that external parties can rely on when assessing the financial strength or health of an organization. Since a certified financial statement is approved by an independent auditor, accurate information about the valuation of assets of a company can be derived.

Back to: Accounting & Taxation

How is a Certified Financial Statement Used?

Checks and balances is a vital part of financial reporting, one of the ways to ensure the accuracy and genuineness of a financial statement it subjecting it scrutinization by external auditors before it becomes certified. Financial statements are unaudited cannot be relied on for accurate information, this is why it is important that companies financial statements are certified to enhance trustworthiness. Most publicly traded companies are mandated to certify their financial statements before they release them. A company can make use of an internal auditor nut most companies prefer an independent or external auditor. Cooking the books, lying in financial statements to defraud investors become impossible with certified financial statements.

Related Topics

  • Managerial Accounting
  • Institute of Management Accountants
  • Annual Report
  • Certified Financial Statement
  • Common Size Financial Statement
  • Accounting Personnel in an Organization
  • Comptroller vs Controller 
  • Financial Statement Analysis
  • Cost Accounting
  • Operating Income
  • Profit Margin  
  • Paid in Capital
  • Retained Cash Flow
  • Book Value (Company)
  • Adjusted Book Value
  • Book Value (Asset)
  • Accounting Insolvency
certified financial statement

Was this article helpful?

Yes
No

Related Articles

  • Capital Gain - Explained
  • Associate of Chartered Institute of Management Accountants - Explained
  • Write-Down Value - Explained
  • Adjusted Gross Income - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand