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The explanation given to me when I was starting out to learn the financial auditing trade was as follows:
The word is derived from the other meaning of "auditor", meaning one who hears, and is thus related to "auditory".
In the middle ages under the feudal system tenants owed rents to their lord and lords owed taxes to the king. Then, as now, this was not popular and on rent/tax day the payer would turn up and offer excuses. You can imagine them claiming "Half my sheep and all the lambs died in the winter snows" or "the cow didn't get pregnant so I have no milk." Remember that hardly anyone outside the church could read or write in those days.
Since the king and many lords were not familiar with local conditions they would appoint a trusted local as "auditor" to listen to these tales of woe and either confirm them "Yes, he did lose half his sheep" or "No, he is eating butter on his bread every day".
I have spasmodically made efforts to obtain confirmation of this derivation without success. However, it makes sense and I have not found any other suggestions.
What else can I help you with?
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