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. Accident Year Experience

    Premiums earned and losses incurred during a specific period ...
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

    Examining A Career As An Auditor

    Stricter government regulations have put auditing professionals in demand.
  6. Professionals

    An Inside Look At Internal Auditors

    Find out why these number crunchers are part of every chief officer's dream team.
  7. Delivery duty paid (DDP) is a shipping term.
    Investing

    What does DDP Mean?

    Delivery duty paid (DDP) is a shipping term specifying that the seller is responsible for all costs associated with delivery of the goods to the buyer. It is usually used when goods are exported ...
  8. Fundamental Analysis

    What is a bad interest coverage ratio?

    Understand how interest coverage ratio is calculated and what it signifies, and learn what market analysts consider to be an unacceptably low coverage ratio.
  9. Active Trading Fundamentals

    What is liquidity risk?

    Learn how to distinguish between the two broad types of financial liquidity risk: funding liquidity risk and market liquidity risk.
  10. Technical Indicators

    What is a good gearing ratio?

    Understand the meaning of the gearing ratio, how it is calculated, the definition of high and low gearing, and how they reflect relative financial stability.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center