DEFINITION of 'Traveling Auditor'

A traveling auditor is a person that collects and analyzes accounting data to determine the financial status of a company. Traveling auditors prepare financial reports and look for evidence of items such as poor controls, duplicated effort, over-spending, fraud, and 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'

A traveling auditor examines all aspects of a company's accounting procedures to ensure records are being prepared and presented in a correct manner. 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. Auditor

    An auditor is a person authorized to review and verify the accuracy ...
  2. Institute Of Internal Auditors ...

    The Institute of Internal Auditors offers certification, education and ...
  3. Audit

    An audit is an unbiased examination and evaluation of the financial ...
  4. Auditor's Report

    An auditor's report is issued as part of a company's annual report, ...
  5. Auditor's Opinion

    A certification that accompanies financial statements and is ...
  6. Attribute Sampling

    Attribute sampling is a statistical method typically used in ...
Related Articles
  1. Personal Finance

    Financial auditor: Job details and average salary

    Discover what it means to hold a financial auditor position, including job duties, education and training, required skills and expected salary.
  2. Managing Wealth

    What internal auditors do – and how much they make

    Learn about what an internal auditor does in their job, as well as the median salary, education and certifications required to head down that career path.
  3. Tech

    An Inside Look At Internal Auditors

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

    America's Missing $15 Billion in Corporate Taxes

    The “Starve the IRS” strategy cuts the supply of corporate auditors. Result: Big-money tax cheats go free and ordinary taxpayers pay every penny they owe.
  5. Personal Finance

    Common interview questions for internal auditors

    Identify some of the most common questions asked during internal auditor job interviews, and learn the best responses to put you ahead of your competition.
  6. Tech

    6 Companies Using Blockchain To Change Travel

    Blockchain is emerging as a powerful technological force that promises to change the travel industry’s status quo.
  7. Investing

    A Day In The Life Of An Accountant

    An analysis of the accountant profession, who becomes an accountant, what they do, where they work, and salary ranges.
  8. Insurance

    The Basics Of Travel Insurance

    Before going on your trip, find out what kind of insurance coverage you will need.
  9. Personal Finance

    How Safe Is Traveling in Europe?

    Here, some factors to consider as you make your travel plans this year.
  10. Personal Finance

    Career advice: Accountant versus controller

    Learn about the differences between controllers and accountants, how the two are related and which is the best career choice for aspiring bookkeepers.
RELATED FAQS
  1. How important are contingent liabilities in an audit?

    Read about the importance of contingent liabilities during an audit, why audits are necessary and how contingent liabilities ... Read Answer >>
  2. What are some examples of inherent risk?

    Here, we define the nature of inherent risk in preparing and executing financial audits and explain its prevalence in the ... Read Answer >>
  3. How is inherent risk assessed by an auditor?

    Inherent risk is one factor an auditor uses to assess the risk of material misstatement associated with a financial statement ... Read Answer >>
  4. Are travel rewards credit cards worth it?

    A travel rewards credit card may be worth it depending on how frequently you travel and whether you can afford to spend on ... Read Answer >>
  5. Are accounts payable an expense?

    Learn about how to differentiate between liability accounts and expense accounts, and see why accounts payable is considered ... Read Answer >>
Trading Center