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Kailasam, L (2011)

Benford Distribution - An Effective Audit Tool

The Chartered Accountant, November 2011, pp. 716-720.

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

Abstract: The Benford analysis is a powerful and relatively simple tool for pointing out false or wrong accounts and can be effectively used in auditing. In all phases of audit the application of this powerful tool enables the audit executive to discharge his duties effectively. The careful application of Benford analysis leads to useful conclusions. This article demonstrates an effective method of locating mistakes in a very large-scale auditable data-set by applying statistical test on Benford distribution. The identification of abnormally behaved data and making in-depth analysis of those data will always lead to identify and prevent fraudulent transactions. The tool explained in this article helps the audit executive to identify objectionable data in order to perform their task more effectively, efficiently and economically within a short span of time.

@article{, author = {L. Kailasam}, title = {Benford Distribution - An Effective Audit Tool}, year = {2011}, journal = {The Chartered Accountant}, month = {November}, pages = {716--720}, url = {}, }

Reference Type: Journal Article

Subject Area(s): Accounting