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.

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