TITLE

BENFORD'S LAW

AUTHOR(S)
Goulding, Kevin
PUB. DATE
December 2013
SOURCE
Accountancy Ireland;Dec2013, Vol. 45 Issue 6, p28
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article provides information on the concept of Benford's Law. It offers a background on the origins of the concept which started when physicist Frank Benford noticed a phenomenon concerning logarithm books. It discusses the application of Benford's Law in the audit and financial reporting field.
ACCESSION #
92932688

 

Related Articles

  • Detecting Fraud Using Benford's Law. DIMM, WILLIAM C. // Criminal Justice;Summer2015, Vol. 30 Issue 2, p67 

    The article illustrates how an observation made by astronomer Simon Newcomb over a century ago can be used to identify numbers that have been fabricated for fraudulent purposes. Topics discussed include his hypothesis of the probability distribution for the leading digit of naturally occurring...

  • Audit Pricing, Lowballing and Auditor Turnovers: A Dynamic Analysis. Kanodia, Chandra; Mukherji, Arijit // Accounting Review;Oct94, Vol. 69 Issue 4, p593 

    Analyzes audit pricing, lowballing and auditor turnover services in accounting practices. Insight into audit pricing model; Effect of lowballing to auditor independence; Evolution of audit prices and auditor turnover; Empirical implications.

  • Benford's Law and Digital Analysis: Application on Turkish Banking Sector. Özera, Gökhan; Babacanb, Burak // Business & Economics Research Journal;2013, Vol. 4 Issue 1, p29 

    We investigate the effectiveness of Benford's Law through a digital analysis of the off-balance sheet account disclosures made by Turkish Banks during the 1990-2010. We found that off-balance sheet account disclosures of the fiscal term 1999 doesn't comply with Benford's Law. Our finding is...

  • Inflation, Quarterly Balance Sheets and the Possibility of Fraud: Benford's Law and the Brazilian case. Gava, Alexandre M.; Vitiello, Luiz // Journal of Accounting, Business & Management;Apr2014, Vol. 21 Issue 1, p43 

    We investigate whether changes on inflation levels have an impact on the possible instance of fraud in financial statements. By assuming that Benford's law can properly capture the frequency of occurrence of the first digit of figures in financial statements of Brazilian companies, we applied it...

  • A Model of Auditing Under Bright-Line Accounting Standards. Caplan, Dennis; Kirschenheiter, Michael // Journal of Accounting, Auditing & Finance;Fall2004, Vol. 19 Issue 4, p523 

    This paper models auditors' preferences for bright-line financial reporting standards. Bright-line standards are unambiguous, requiring no judgment in their application. We characterize bright-line standards as one end of the continuum in the trade-off between relevance and reliability. We...

  • Benford Kanunu ve Muhasebe Verilerinde Uygulanmasına Ait Kamu Sektöründe Bir Uygulama. YANIK, Ramazan; SAMANCI, Tuna Han // Journal of Graduate School of Social Sciences;2013, Vol. 17 Issue 1, p335 

    As a mathematical rule, Benford's Law, which stipulates that the probabilities of occurrence of numbers particularly in the first digit are not equal and are in different portions, is used to determine the existence of any correction or misleading information on the date that are subject to the...

  • Benford's Law: Analyzing a Decade of Financial Data. Alali, Fatima A.; Romero, Silvia // Journal of Emerging Technologies in Accounting;2013, Vol. 10, p1 

    This study uses a decade o f financial accounting data to examine if and how they depart from Benford's Law. Using a large sample o f U.S. public companies, we conduct an analysis o f the first-two digits o f data items generally used in research to measure total accruals and discretionary...

  • EXAMINING RELIABILITY OF LARGE FINANCIAL DATASETS USING BENFORD'S LAW. Grabiński, Konrad; Paszek, Zbigniew // Economic Themes;2013, Vol. 51 Issue 3, p515 

    In the article, the authors have analyzed large financial datasets from the perspective of consistency with Benford'a law. Two groups of datasets have been investigated: selected accounting items reported by European publicly listed companies and profitability rations. We argue that if datasets...

  • BENFORD YASASININ SERMAYE PÄ°YASASINDA FAALÄ°YET GÖSTEREN ARACI KURUMLARIN KONSOLÄ°DE BÄ°LANÇOLARINA UYGULANMASI. UYAR, Aydın; UZUNER, Mustafa Talha // Trakya University Journal of Social Science;Jun2014, Vol. 16 Issue 1, p87 

    In this study, the types and the reasons of fraud in the balance sheets of brokerage houses has been summarized, generic information about Benford's law and χ² goodness of fit test has been given and the application of Bendford's law for financial auditing has been explained. Then...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics