The Appraisal Journal, Fall, pp. 274-284.
ISSN/ISBN: Not available at this time. DOI: Not available at this time.
Abstract: Benford’s Law has emerged as a tool for forensic financial work. It has been proven in mathematics and science for the detection of database anomalies, corruption, and accounting fraud. This article shows how this tool also can be applied in appraisal review. Appraisal managers, reviewers, and users can utilize Benford’s Law as an appraisal review technique to locate data error or manipulation. Benford’s Law states that the digits in many types of important databases have predictable frequencies, while erroneous, corrupted, or fraudulent databases do not. Many types of real estate and valuation databases are consistent with Benford’s Law, thereby affording its use in the detection of valuation data anomalies.
Bibtex:
@article {,
AUTHOR = {Mark Pomykacz and Chris Olmsted and Katherine Tantinan},
TITLE = {Benford’s Law in Appraisal},
JOURNAL = {The Appraisal Journal},
YEAR = {2017},
VOLUME = {Fall},
PAGES = {274--284},
URL = {http://federalappraisal.com/wp-content/uploads/2018/01/Benfords-Law-Article-Fall-2017.pdf},
}
Reference Type: Journal Article
Subject Area(s): Accounting