How Forensic Accountants Use Benford's Law To Detect Fraud
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How forensic accountants use Benford's Law to detect fraud
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Benford's law and fraud Refer to Exercise 13 . It might also be possible to detect an employee's fake expense records by looking at the variability in the first digits of those expense amounts. (a) Calculate the standard deviation σY. This gives us an idea of how much variation we'd expect in the employee's expense records if he assumed that first digits from 1 to 9 were equally likely. (b) Now calculate the standard deviation of first digits that follow Benford's law (Exercise 5 ). Would using
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