Technology In Auditing Using Benford?s Law

engine room in Auditing Using Benford?s honor Technology in Auditing Using Benfords Law What started out(a) as a curious observation by an astronomer in 1881 has the potential to have a significant jolt on the audit profession 125 years later. In 1881, the astronomer Simon Newcomb noticed that the front pages of his logarithmic tables frayed smart than the substitute of the pages. Newcomb concluded the prototypical digit is oftener 1 than either other digit. Newcomb quantified the probability of the occurrence of the varied digits as being the first digit and as puff up as the second digit.

For the most part, Newcomb just considered it a distinctive feature and leftfie ld it at that. (Caldwell 2004) In the 1920s, a physicist at the GE interrogative Laboratories, Frank Benford, thought it more than a curiosity and conducted extended testing of naturally occurring data and computed the expected frequencies of the digits. In digest over 1, there is a table of these expected frequencies for the first fo...If you command to get a full essay, order it on our website: OrderEssay.net

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