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da Silva, CG and Carreira, PMR (2013)

Selecting Audit Samples Using Benford's Law

AUDITING: A Journal of Practice & Theory Vol. 32, No. 2, pp. 53-65.

ISSN/ISBN: Not available at this time. DOI: 10.2308/ajpt-50340

Abstract: We contribute to digital analysis by developing two mathematical programming models that can assist auditors in selecting more promising audit samples, using Benford's law. One model identifies the smallest subset of nonconforming records in a dataset, given some predefined conformity criteria, and the other highlights the k most nonconforming records. The models take into account several conformity tests and test statistics simultaneously. The application of the models is illustrated using suggested protocols on a set of simulated data. Finally, the effectiveness of the models in detecting typical data manipulations is assessed under different contamination levels.

@article {, AUTHOR = {Carlos Gomes da Silva and Pedro M. R. Carreira}, TITLE = {Selecting Audit Samples Using Benford's Law}, JOURNAL = {AUDITING: A Journal of Practice & Theory}, YEAR = {2013}, VOLUME = {32}, NUMBER = {2}, PAGES = {53--65}, DOI = {10.2308/ajpt-50340}, URL = {}, }

Reference Type: Journal Article

Subject Area(s): Accounting