IS BENFORD’S LAW EFFECTIVE IN FRAUD DETECTION FOR EXPENSE CYCLE?

Emre ERGİN; İlkay Ejder ERTURAN

doi:https://doi.org/10.14780/muiibd.854444

Article Details

IS BENFORD’S LAW EFFECTIVE IN FRAUD DETECTION FOR EXPENSE CYCLE?

Authors:

Emre ERGİN | İlkay Ejder ERTURAN

Publisher:

Marmara University

Main Topics:

Sociology and anthropology

Journal:

Marmara University Journal of Economic and Administrative Sciences 2020 Vol.42 Issue 2, pp.316-326

Document Type:

Article

Publication Date:

12/2020

Document Language:

English

Document ID (Org No.):

2000535483

Frequency:

Bi-Annual

pISSN:

2587-2672

DOI:

https://doi.org/10.14780/muiibd.854444

Abstract:

 

Despite measures taken by firms to prevent fraud, it has been found in recent studies that losses derived
from fraudulent activities are increasing on a global basis. International standards on auditing do not define
which analytical approaches and technological tools to be used in performing audit. Decisions are left
on the auditor’s judgment. Auditors try to use digital techniques to deal with mass data sets generated
by firms. Academic research may mislead practitioners as controversial outcomes exist in literature
concerning empirical research. Benford’s Law (BL) is one of the methods used frequently in digital analysis.
Although some researchers defend the use of BL in audit, especially in fraud detection, this paper disputes
its effectiveness for expense cycle. Different firm’s data are tested to conclude that the use of BL is not
appropriate for expense items. The reasons of this deficiency are explained in this paper.

Article Details

IS BENFORD’S LAW EFFECTIVE IN FRAUD DETECTION FOR EXPENSE CYCLE?

Authors: Emre ERGİN | İlkay Ejder ERTURAN

Publisher: Marmara University

Main Topics: Sociology and anthropology

Journal: Marmara University Journal of Economic and Administrative Sciences 2020 Vol.42 Issue 2, pp.316-326

Document Type: Article

Publication Date: 12/2020

Document Language: English

Document ID (Org No.): 2000535483

Frequency: Bi-Annual

pISSN: 2587-2672

DOI: https://doi.org/10.14780/muiibd.854444

Issues

Authors:

Emre ERGİN | İlkay Ejder ERTURAN

Publisher:

Marmara University

Main Topics:

Sociology and anthropology

Journal:

Marmara University Journal of Economic and Administrative Sciences 2020 Vol.42 Issue 2, pp.316-326

Document Type:

Article

Publication Date:

12/2020

Document Language:

English

Document ID (Org No.):

2000535483

Frequency:

Bi-Annual

pISSN:

2587-2672

DOI:

https://doi.org/10.14780/muiibd.854444