Traveling Auditor


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.

BREAKING DOWN '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.

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  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  6. What can working capital be used for?

    Working capital is used to cover all of a company's short-term expenses, including inventory, payments on short-term debt ... Read Full Answer >>

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