Benford's law to assist in detecting fraud

Dear,

I have updated the guide and included more learning details which could help you to understand it with practical examples.

https://internalauditworkingpapers.weebly.com/benfords-law-application.html

Using Benford's Law in Accounting Data to detect the false invoices, to detect fraudulent entries etc.

If you are not known or have not heard about Benford’s Law before, Let me explain you as an auditor or accountant how could you use the Benford’s Law while auditing the accounts data e.g. purchase invoices/ Bills etc.

This guidance will let you know the concept and how to apply the benford’s law in an accounting data e.g. Supplier’s Invoices or Bank payments etc.

In 1993, in State of Arizona v. Wayne James Nelson (CV92-18841),
he was caught or found guilty to trying to defraud the state for aproximately $2 Million. Nelson (A Manager) in Arizona state treasurer office told that the funds had been diverted to a fake vendor due to the absense of safeguards in new computer system. this fraud was detected using the benford's law.

https://internalauditworkingpapers.weebly.com/benfords-law-application.html

Regards,

Manzoor ahmed