Traveling Auditor

AAA

DEFINITION of 'Traveling Auditor'

A person that collects and analyzes accounting data to determine the financial status of a company. They prepare financial reports, look for poor controls, duplicated effort, over-spending, fraud, non-compliance with laws, regulations and management policies. They recommend controls to guarantee system reliability and data integrity, prepare detailed reports on audit findings, and inspect cash on hand. Traveling auditors note receivable and payable, negotiable securities, and canceled checks to confirm records are accurate. The auditor reviews data about material assets, net worth, liabilities, capital stock, surplus, income and expenditures. They also examine inventory to verify journal and ledger entries.

INVESTOPEDIA EXPLAINS 'Traveling Auditor'

In terms of tax-related work, this auditor evaluates taxpayer finances to determine tax liability using knowledge of interest and discount rates, annuities, and valuation of stocks and bonds. A traveling auditor also reviews taxpayer accounts, and conducts audits on-site, by correspondence or by summoning taxpayers to his or her office. The auditor examines records, tax returns and related documents pertaining to settlement of a decedent's estate. Mainly economics and accounting knowledge is required. The 2010 Bureau of Labor Statistics indicated the Median Annual Wage for this profession is $68,960, and the median hourly wage is $33.15.

RELATED TERMS
  1. Certified Internal Auditor - CIA

    A certification offered to accountants who conduct internal audits. ...
  2. Auditor

    An official whose job it is to carefully check the accuracy of ...
  3. Cook The Books

    A buzzword describing fraudulent activities performed by corporations ...
  4. Internal Audit

    The examination, monitoring and analysis of activities related ...
  5. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
  6. Operating Cost

    Expenses associated with administering a business on a day to ...
RELATED FAQS
  1. What are some examples of a deferred tax liability?

    In the United States, laws allow companies to maintain two separate sets of books for financial and tax purposes. Because ... Read Full Answer >>
  2. How can the first-in, first-out (FIFO) method be used to minimize taxes?

    The first-in, first-out (FIFO) inventory cost method can be used to minimize taxes during periods of rising prices, since ... Read Full Answer >>
  3. Why is the use of contra accounts so important for maintaining ledgers?

    Contra accounts have been used in financial accounting to verify the balance of another corresponding account since Renaissance ... Read Full Answer >>
  4. What impact did the Sarbanes-Oxley Act have on corporate governance in the United ...

    After a prolonged period of corporate scandals involving large public companies from 2000 to 2002, the Sarbanes-Oxley Act ... Read Full Answer >>
  5. How are prepaid expenses recorded on an income statement?

    Prepaid expenses are not recorded on an income statement. When the prepaid expense becomes due, the expense is recognized ... Read Full Answer >>
  6. How is deferred revenue treated under accrual accounting?

    In accrual accounting, deferred revenue, or unearned revenue, represents a liability on the balance sheet recorded on funds ... Read Full Answer >>
Related Articles
  1. Investing Basics

    12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  2. Taxes

    How To Appeal Your IRS Audit

    The auditor's review isn't always the last word. Many taxpayers who are audited can successfully appeal their audits and save thousands of dollars.
  3. Personal Finance

    A Look At Accounting Careers

    More than just crunching numbers, this career blends detective work with trouble shooting.
  4. Taxes

    Making Sense Of The Tax Code

    If tax rules and regulations are Greek to you, read on to learn how to decipher them.
  5. Professionals

    An Inside Look At Internal Auditors

    Find out why these number crunchers are part of every chief officer's dream team.
  6. Professionals

    Examining A Career As An Auditor

    Stricter government regulations have put auditing professionals in demand.
  7. Economics

    What are Accounting Principles?

    The term accounting principles refers to rules and guidelines companies use to help them record their business and financial transactions.
  8. Economics

    Understanding the Accounting Cycle

    An accounting cycle consists of the traditional procedures performed to record business events and transactions in a company’s accounting records.
  9. Fundamental Analysis

    When & Why Should a Company Use LIFO

    By using LIFO (last in, first out) when prices are rising, companies reduce their taxes and also better match revenues to their latest costs.
  10. Fundamental Analysis

    The Importance Of Analyzing Accounts Receivable

    While investors often focus on revenues, net income, and earnings per share, they should not overlook the importance of analyzing accounts receivable.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center