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Essay

Technology in Auditing Using Benford's Law

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Issue:

Business

 

Written by:

Scarlet M

 

Date added:

June 13, 2013

 

Level:

University

 

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No of pages / words:

6 / 1570

 

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1396 times

 

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Essay content:

Newcomb quantified the probability of the occurrence of the different digits as being the first digit and as well as the second digit. For the most part, Newcomb just considered it a curiosity and left it at that. (Caldwell 2004) In the 1920's, a physicist at the GE Research Laboratories, Frank Benford, thought it more than a curiosity and conducted extensive testing of naturally occurring data and computed the expected frequencies of the digits...
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In Table 1, there is a table of these expected frequencies for the first four positions. Benford also determined that the data could not be constrained to only show a restricted range of numbers such as market values of stock nor could it be a set of assigned numbers such as street addresses or social security numbers...
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