Benford's Law
Applications for Forensic Accounting, Auditing, and Fraud Detection (Wiley Corporate F&A)
Ranked #44 in Auditing
A powerful new tool for all forensic accountants, or anyone who analyzes data that may have been alteredBenford's Law gives the expected patterns of the digits in the numbers in tabulated data such as town and city populations or Madoff's fictitious portfolio returns. Those digits, in unaltered data, will not occur in equal proportions; there is a large bias towards the lower digits, so much so that nearly one-half of all numbers are expected to start with the digits 1 or 2. These patterns were originally discovered by physicist Frank Benford in the early 1930s, and have since been found to... more
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