Benfor's law to the rescue: taking the popular analysis method to a deeper level can uncover well-hidden fraud and control failures.
Internal Auditor › Vol. 68 Nbr. 1, February 2011
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IT AUDIT
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Benfor's law to the rescue: taking the popular analysis method to a deeper level can uncover well-hidden fraud and control failures.
AS DEMONSTRATED BY ACCOUNTING professor Mark Nigrini in the 1990s, the value of Benford's Law to auditors is that deviations of leading digits in a data population from an expected logarithmic pattern might suggest irregularities. Benford's Law does not provide a final answer as to whether irregularities have occurred, but it is useful in leading the auditor to discrepancies for further investigation. What makes Benford's Law pa...
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