The first tool that auditors can use to detect frauds in a company is calculating financial ratios both for the current year and the past year and comparing them. Audit software makes it very easy to calculate these ratios. If there is substantial difference in these ...
Solution Summary
The response provides you a structured explanation of how Benford's law can be used for detecting fraud . It also gives you the relevant references.
... IRS uses this to detect fraud. If the numbers in a set of data like a tax return more or less match the frequencies and ratios predicted by Benford's Law the ...
... Finally, goodwill Using Forensic Analytics to Evaluate the tion ... eral, we find a very limited use of fair ... Fair value accounting is used when reliable fair ...
