Use Of Benford's Law In Fraud Investigation Essay

Use Of Benfords Law In Fraud Investigation - Essay Exampleit is surmised that when used appropriately and prudently, Benfords Law presents itself as efficacious tool in investigating fraud, curiously in relation to accounting and auditing situations. The mathematical validation of the constabulary and the technological advances in the recent past, which facilitate faster and easier programs for digital analysis, have enhanced the usefulness of the police force in detecting fraud, as the law is increasing used by forensic accountants and auditors. The cases discussed in the build of the paper demonstrate the usefulness of the law in detecting fraud in real smell situations. However, it is important to note that the detection and establishment of fraud in the legal sense of the term calls for set ahead analysis and Benfords law is only a facilitator in detecting fraud, albeit an effective facilitator.Given the premeditation in SAS No. 99 that traditional statistical methods onl y provide broad indications of fraud, and the increasing incidences of clerical crimes, the usefulness and applicability of Benfords law in fraud investigation assumes greater significance. Benfords law, is particularly useful as it conducts digit by digit analysis and helps in identifying the fraud exactly, despite the broad scale and size of data.