Applying Benford's Law
Applying Benford's Law

Author(s): Renáta Pakšiová, Zuzana Kubaščíková
Subject(s): Methodology and research technology
Published by: Masarykova univerzita nakladatelství
Keywords: fraud; Benford's law; journal entries analysis;
Summary/Abstract: Benford's Law is used not only to detect electoral fraud but also to detect manipulation of numbers especially in accounting. Benford’s Law can recognize the probabilities of highly likely or highly unlikely frequencies of numbers in a data set. The probabilities are based on mathematical logarithms of the occurrence of digits in randomly generated numbers in large data sets. The objective of this paper is to describe and interpret the results applying Benford´s Law on a set of accounting records – journal entries in several companies.

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