Auditor

Auditor

1. A person who reviews activities to identify inefficiencies, reduce costs, and otherwise achieve organizational objectives. Auditors may investigate potential theft or fraud and ensure compliance with applicable regulations and policies. They also help ensure the accuracy of reports. Audits are an essential part of a company's efficiency. See also: Internal auditor, External auditor.

2. In taxation, an employee of the tax collection agency who reviews the reports of an individual or company to see if all income, deductions, and/or credits reported accurately reflect reality. This is done to ensure that each individual or company pays his/her/its full tax liability. Audits are conducted on a random basis, or when something appears remiss on a tax return. See also: Tax avoidance, Tax evasion.

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auditor

A person who examines an organization's financial records and reports. If the person is an employee of the organization being audited, he or she is known as an internal auditor. If the auditor is not an employee of the organization, he or she is called an external auditor.