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The ACL Benford command Essay

1. The ACL Benford command counts the times each digit or digit combination occurs in a data set and makes a comparison between actual count and expected count. The output of the command is showed in a graph and includes Z-statistic for each count to help evaluate the significance of deviation between actual and expected counts. 2. The use of Benford command provides auditors and other data analysts caution on that there are possible anomalies in large data sets which deserve further analysis. 3. The Benford command is activated by benford formula. Users can select Analyze from the menu bar and choose Perform Benford Analysis to display the Benford dialog box.

1. These Characteristics are following: comprised of similar sized values for similar phenomena; without built-in minimum and maximum values; without assigned numbers and with four or more digits.

2. Seven steps to perform a Benford’s Law Analysis:

1) On the Analysis tab, in the Explore group, click Benford’s Law. The Benford’s Law dialog box appears.
2) Select the field to analyze
3) Select the value type
4) Show the upper and lower boundaries.
5) Click Advanced… to set parameters for the Last Two Digit test and for creating suspicious output databases.
6) Select the required tests
7) Create a result output
3. These fields are contained in the database: First Digit, First Two Digits, First Three Digits, and Second Digit Last Two Digits, Second Order and Summation Suspicious data, upper and lower boundaries, mean absolute deviation and parameters.

1. Payroll fraud is usually paying a fictitious or ghost employee in a salary system automatically. One way is making electronic payments into bank accounts where no cheques need to be collected.

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