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Quick, R and Wolz, M (2005)

Benfordís law in German financial statements

Finance India, 19 (4), 1285-1302.

ISSN/ISBN: 09703772 DOI: Not available at this time.

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Abstract: In order to check the reliability of financial statements, auditing practitioners increasingly require simple, effective and efficient methods. In recent times, it has been suggested that the digits of financial statements should follow a particular distribution hypothesis - Benford's Law (BL) - in order to discover possible intended and unintended errors. The following study utilises the data of 1,820 financial statements produced between the years 1994 and 1998 and compares this data with the hitherto mentioned hypothesis. It establishes an amazing obedience of German financial statement data to Benford's law as the starting point for new analytical auditing techniques. Most known studies concerning the validity of Bl are from the US, Australia and New Zealand. These studies are based on the Anglo-American Accounting model which is primarily addressed to shareholders & does not offer many accounting options.

@article{, title={Benford's law in German financial statements}, author={Quick, Reiner and Wolz, Matthias}, journal={Finance India}, volume={19}, number={4}, pages={1285}, year={2005}, publisher={Indian Institute of Finance}, ISSN={09703772}, }

Reference Type: Journal Article

Subject Area(s): Accounting