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. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
  5. Internal Audit

    The examination, monitoring and analysis of activities related ...
  6. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
Related Articles
  1. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

  2. How To Appeal Your IRS Audit
    Taxes

    How To Appeal Your IRS Audit

  3. A Look At Accounting Careers
    Personal Finance

    A Look At Accounting Careers

  4. Making Sense Of The Tax Code
    Taxes

    Making Sense Of The Tax Code

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center