Auditor

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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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BREAKING DOWN 'Auditor'

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.

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RELATED FAQS
  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 >>
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    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. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>
  5. How do dividend distributions affect additional paid in capital?

    Whether a dividend distribution has any effect on additional paid-in capital depends solely on what type of dividend is issued: ... Read Full Answer >>
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