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Tota, I, Aliaj, A and LamÁja, J (2016)

The use of Benfordís law as a tool for detecting fraud in accounting data

Interdisciplinary Journal of Research and Development 3(1), pp. 73-77.

ISSN/ISBN: Not available at this time. DOI: Not available at this time.



Abstract: Benfordís law has been presented as an effective audit tool in identifying suspect accounts for further analysis. Many researches have focused on the validity if the Benford distribution is an appropriate tool to discriminate fraud and non-fraud accounting. According (Nigrini, 2012) ĎAccounting data, in general, has a remarkable conformity to Benfordís Law; It is still an open question as to whether accounting numbers from companies in emerging markets will conform to Benfordís Law in their emerging stages or whether conformity comes about only in mature marketsí. In this paper we attempt to describe and illustrate the implementation of fraud discovery with Benfordís law analysis in an Albanian case, to check if the expected frequencies of the digits are in accordance with the accounting data. The result could be helpful for auditors to detect and prevent fraud and misrepresentation in financial statements.


Bibtex:
@article{, author = {Ikbale Tota and Ada Aliaj and Jonida Lamçja}, year = {2016}, title = {The use of Benfordís law as a tool for detecting fraud in accounting data}, journal = {Interdisciplinary Journal of Research and Development }, volume = {3}, number = {1}, pages = {73--77}, url = {https://www.uamd.edu.al/new/wp-content/uploads/2016/10/11.-I.Tota_.pdf}, }


Reference Type: Conference Paper

Subject Area(s): Accounting