An unaudited opinion is provided in cases where financial statements or specific financial information have not been subject to a comprehensive audit conducted by an independent external auditor. Instead, the representations and information provided by the organization’s management serve as the basis for the financial statements. While the financial statements may adhere to recognized accounting standards, the lack of an external audit limits their reliability and scope of assurance. For example, when a startup provides potential investors with its financials for review, it may furnish unaudited statements due to resource constraints. These statements should clearly mention that they are 'unaudited', cautioning users to consider their level of reliability. In contrast to an audited opinion, which provides insights into the accuracy and compliance of financials with accounting principles, an unaudited opinion signifies that such verification has not occurred, potentially leaving room for undiscovered errors or misstatements. Related terms to understand this concept more broadly include 'Audit Opinion', 'Financial Statements', and 'Material Measurable Information'.