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Rahayu, TS and Adhariani, D (2007)

Assessing the Customs Value By the Use of Benfordís Law: A Case Study

Journal of Economics Business and Accounting.

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



Abstract: The objective of this research is to find answers to two questions. The first question is whether Benfordís Law can be effectively used as one of the instruments to measure whether customs value of three sample companies is acceptable or not, while the second one is whether Benfordís Law can be effectively used as one of the audit planning instruments for determining whether the customs value of those three sample companies is acceptable or not. To answer these questions the first thing to do is to find out the customs value of those three sample companies. Customs value has been a regular audited object based on the List of Plan for Audited Objects (Daftar Rencana Objek Audit/DROA) in Audit Department, Customs and Excise District Office IV Jakarta (Kantor Wilayah Bea dan Cukai/KWBC). The source of the selected data is Reports of Audit Results (Laporan Hasil Audit/LHA) issued by KWBC IV Jakarta during the year 2005. To assess whether a particular customs value is acceptable or not then a digital analysis vehicle called Benfordís Law as well as a number of statistical tests is used. Assessment is done to detect fraudulent data as part of risk management in audit planning in order to choose companies to be included in DROA. The result of the research shows that Benfordís Law can neither be used effectively to assess whether customs value of three sample companies is acceptable or not, nor can it be used effectively as one of the audit planning instruments for those three companiesí customs value. However, this result applies only to the samples tested, and cannot be generalized. Regardless of this result, the implementation of Benfordís Law as part of audit planning should be taken into account for later use as it is efficient to do.


Bibtex:
@article {, AUTHOR = {Tunjung Sri Rahayu, and Desi Adhariani}, TITLE = {Assessing the Customs Value By the Use of Benfordís Law: A Case Study}, JOURNAL = {Journal of Economics Business and Accounting}, YEAR = {2007}, VOLUME = {}, NUMBER = {}, PAGES = {}, URL = {https://www.academia.edu/35917356/Assessing_the_Customs_Value_By_the_Use_of_Benfords_Law_A_Case_Study}, }


Reference Type: Journal Article

Subject Area(s): Accounting