TITLE

Detecting Cosmetic Earnings Management Using Benford's Law

AUTHOR(S)
Jordan, Charles E.; Clark, Stanley J.
PUB. DATE
February 2011
SOURCE
CPA Journal;Feb2011, Vol. 81 Issue 2, p32
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses the use of General Electric physicist Frank Benford's Benford's Law in detecting cosmetic earnings management (CEM) in companies. The definition of CEM is given and the method for testing the presence of CEM is described. Articles documenting the use of Benford's law in detecting fraudulent behavior are cited such as "Computer Assisted Techniques for Fraud Detection," by David Coderre and Paul Warner, published in "The CPA Journal."
ACCESSION #
59756815

 

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