What is the Core Difference in Management Financial Statements and Audited Financial Statements?

In fact we can say that this is the picture and it`s negative;

Managing and preparing Financial Statements are the building the pyramid from the bottom up to the top. 

Or painting the picture .While the Audit is the looking at the picture that being finished from the top up to the details at the bottom.

Both of them are very important and have a different point of view. Even if  you work as an auditor for a time then work at the same company as an auditor, you will find your self have different attitude and methodologies.

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Following are core differences:

1. Management financial are typically called as unaudited financial where as audited are called as Audited & certified financial.
2. Management Financials are not easily acceptable in Financial institutions like banks for Facilities, but audited Financials are accepted by financial institutions for facilities.
3. In most of the cases the management financial are without expert opinion, but audited financials are with an useful expert opinion.
4. Management Financials are final at management level however audited financial may be with some suggestion or advice to management.
5. Management financials are not much useful to Stock holders, General Public, suppliers, Lenders etc. but Audited Financials are acceptable to all of them.
6. Management Financial are mainly prepared as per policy and procedures laid down by management however the audited financials are prepared keeping in view various acts, laws and government policies etc.
7. Management Financial are in house financial prepared by management staff not necessarily a CPA or CA, but audited financials are by an expert CPA or similar capacity.

The Main difference between Management financial statement is prepared for internal reporting that is used by management for further  developement of business.

Audited Financial statement is prepared for External reporting purpose mainly to the external stake holders like creditors, government and legal compliance

The first one in unapproved and the second is the final

I agree with Professor answer / Tamer

Thank you for your kindness invitation.

I think the answer of Anil Lalwani very good like the Question.

Regards

Management Financial Statements provide information to people within an organization while Audited Financial Statements are mainly for those outside it, such as shareholders

Management Financial Statements are required by law while Audited Financial Statements are not Specific standards and formats may be required for statutory accounts such as in the I.A.S International Accounting Standard within Europe.

Management Financial Statements cover the entire organization while Audited Financial Statements may be concerned with particular products or cost centres.

Audited Financial Statements are actually prepared or made after the changes made by auditors in Management's Financial Statement. 

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I do agree with Anil Lalwani  answers