Benford's Law Analysis for fraud detection
I am working through Urton Anderson's fabuolously helpful book "Implementing the International Professional Practices Framework" and ran across a recommended preventative measure for fraud in chapter 9 - Benford Law's Analysis.
This rang a few vague bells - so I Googled the term and found this site that looks worth looking into. It includes a quick tutorial on how to analyze data for patterns to detect unusual or fraudulent transactions. See http://www.ezrstats.com/Benford.htm Is this vendor trustworthy? I don't know. What matters is the technique - and that the IIA thinks enough of it to expressly recommend it in its literature.
Governmental auditors unite! Leita Hart-Fanta, CPA, CGFM, and CGAP is the author of “The Yellow Book Interpreted” and owner of Yellowbook-CPE.com a website devoted to training for governmental auditors. Whether you are an internal auditor or monitor for a government entity or a CPA doing grant audits, you will enjoy Leita’s humorous take on the complexity of auditing in the government environment.