DEFINITION of 'Auditor'

An official whose job it is to carefully check the accuracy of business records. An auditor can be either an independent auditor unaffiliated with the company being audited or a captive auditor, and some are elected public officials. The term is sometimes synonymous with "comptroller." Auditors are used to ensure that organizations are maintaining accurate and honest financial records and statements.


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Auditors can work for many different entities, such as the IRS or a state government. Auditors are also found in the private sector at accounting firms. There are both internal and external auditors; internal auditors are usually employees or contractors with the company they are auditing, while external auditors generally work either directly for or in conjunction with governmental agencies.

  1. Audit

    An unbiased examination and evaluation of the financial statements ...
  2. Traveling Auditor

    A person that collects and analyzes accounting data to determine ...
  3. Government Accountability Office ...

    A department of the U.S. government that monitors and audits ...
  4. Certified Information Systems Auditor ...

    A certification available for professionals who conduct audits ...
  5. Independent Auditor

    A certified public accountant who examines the financial records ...
  6. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
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  1. What are the benefits of financial sampling?

    Financial sampling allows auditors to approximate the rate of error within financial statements. For accounting purposes, ... Read Full Answer >>
  2. Does stockholders equity accurately reflect a company's worth?

    Stockholders' equity is one method to evaluate a company's worth. It tends to work better for companies in established industries ... Read Full Answer >>
  3. How is inherent risk assessed by an auditor?

    Inherent risk is one factor, along with control risk, that an auditor uses to assess the risk of material misstatement associated ... Read Full Answer >>
  4. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  5. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  6. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>

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