{"ok":true,"canonical_url":"https://dealroom.so/glossary/audited-financial-statements","api_url":"https://dealroom.so/api/public/glossary/audited-financial-statements","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"audited-financial-statements","term":"Audited financial statements","group":"Reading the business","definition":"These are financial reports (P&L, Balance Sheet, Cash Flow) that have been reviewed and verified by an independent CPA. They offer the highest level of assurance regarding financial accuracy.","what_it_means":"While not always available for small businesses, audited financials provide the most reliable view of a company's historical performance. If the seller has them, your CPA will scrutinize them for anomalies. If not, you'll rely on reviewed or compiled statements, and tax returns, requiring more thorough due diligence.","url":"https://dealroom.so/glossary/audited-financial-statements","official_sources":[],"related":[{"slug":"tax-returns","term":"Tax returns","url":"https://dealroom.so/glossary/tax-returns"},{"slug":"interim-financial-statements","term":"Interim financial statements","url":"https://dealroom.so/glossary/interim-financial-statements"},{"slug":"cpa","term":"CPA","url":"https://dealroom.so/glossary/cpa"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Do I need to provide personal financial statements for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-provide-personal-financial-statements-for-an-sba-7-a-loan"},{"question":"What types of personal financial statements are required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-personal-financial-statements-are-required-for-an-sba-7-a-loan"},{"question":"What types of personal financial statements are typically required for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/what-types-of-personal-financial-statements-are-typically-required-for-an-sba-7-a-loan-app"},{"question":"Can unverified or inconsistent financial statements from the seller cause my SBA loan to be denied?","url":"https://dealroom.so/sba-7a/questions/can-unverified-or-inconsistent-financial-statements-from-the-seller-cause-my-sba-loan-to-b"},{"question":"What kind of financial statements does the SBA 7(a) loan application require from my business?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-financial-statements-does-the-sba-7-a-loan-application-require-from-my-busine"},{"question":"What specific due diligence does the lender perform on the target business's financial statements for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-specific-due-diligence-does-the-lender-perform-on-the-target-business-s-financial-sta"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Audited financial statements","url":"https://dealroom.so/glossary/audited-financial-statements","source_type":"DealRoom Data"}}