What Is a 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 poor controls, duplicated efforts, over-spending, fraud, and non-compliance with laws, regulations, and management policies.
A traveling auditor recommends controls to guarantee system reliability and data integrity, prepares detailed reports on audit findings, and inspects cash on hand. Traveling auditors note accounts 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.
Understanding a 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 their office. The auditor examines records, tax returns and related documents pertaining to the settlement of a decedent's estate. Mainly economics and accounting knowledge is required. The Bureau of Labor Statistics indicated the median annual wage for this profession was $71,550 in 2019, and the median hourly wage was $34.40.