# Question: 1 The occurrence of different digits in most sets of

1. The occurrence of different digits in most sets of numbers is random.

a. True

b. False

2. _____ is founded on the counterintuitive observation that individual digits of multidigit numbers are not random but follow a pattern known as Benford’s Law:

a. Fraud analysis

b. Discrete analysis

c. Open system analysis

d. Digital analysis

3. According to Benford’s Law, the first digit in a multi-digit number is expected to be 1 about:

a. 20% of the time

b. 30% of the time

c. 50% of the time

d. Proportional to the number of digits in a multi digit number

4. To conform to Benford’s Law, a number series must approximately follow a geometric sequence, where each successive number is calculated as a fixed percentage increase over the previous number.

a. True

b. False

5. Data sets that do not follow Benford’s Law are data sets:

a. With built- in maximums or minimums and assigned numbers

b. That contain over 10,000 observations

c. That contain economic information

d. None of the above are correctly stated

6. Research studies have found Benford’s Law to be appropriate for the examination of:

a. Net income

b. Fraud detection

c. Earnings per share

d. Each of the above are correct responses to this question

7. A graph of Benford’s first- digit frequencies will resemble:

a. A normal curve

b. A positively sloped yield curve

c. A ski slope

d. A U- shaped curve

8. If a fraudster is deliberately issuing payments below some policy threshold, such as $ 9,000, the data profile will show a jump at digit:

a. 1

b. 4

c. 8

d. 9

9. Which of the following is not a type of test that looks for deviations from Benford’s Law:

a. First- two- digits test

b. Last- two- digits test

c. All digits test

d. First- digit test

10. It is easier to identify variations from Benford’s law using small, rather than large, data sets.

a. True

b. False

a. True

b. False

2. _____ is founded on the counterintuitive observation that individual digits of multidigit numbers are not random but follow a pattern known as Benford’s Law:

a. Fraud analysis

b. Discrete analysis

c. Open system analysis

d. Digital analysis

3. According to Benford’s Law, the first digit in a multi-digit number is expected to be 1 about:

a. 20% of the time

b. 30% of the time

c. 50% of the time

d. Proportional to the number of digits in a multi digit number

4. To conform to Benford’s Law, a number series must approximately follow a geometric sequence, where each successive number is calculated as a fixed percentage increase over the previous number.

a. True

b. False

5. Data sets that do not follow Benford’s Law are data sets:

a. With built- in maximums or minimums and assigned numbers

b. That contain over 10,000 observations

c. That contain economic information

d. None of the above are correctly stated

6. Research studies have found Benford’s Law to be appropriate for the examination of:

a. Net income

b. Fraud detection

c. Earnings per share

d. Each of the above are correct responses to this question

7. A graph of Benford’s first- digit frequencies will resemble:

a. A normal curve

b. A positively sloped yield curve

c. A ski slope

d. A U- shaped curve

8. If a fraudster is deliberately issuing payments below some policy threshold, such as $ 9,000, the data profile will show a jump at digit:

a. 1

b. 4

c. 8

d. 9

9. Which of the following is not a type of test that looks for deviations from Benford’s Law:

a. First- two- digits test

b. Last- two- digits test

c. All digits test

d. First- digit test

10. It is easier to identify variations from Benford’s law using small, rather than large, data sets.

a. True

b. False

## Answer to relevant Questions

A five- year earnings summary for Hellemn Candy, Inc. is presented in the following table. Using this data, construct a single graph of the three earnings measures, and then prepare a memo to your professor addressing the ...Obtain an article written by Durtschi, Hillison, and Pacini entitled “ The Effective Use of Benford’s Law to Assist in Detecting Fraud in Accounting Data,” published in the Journal of Forensic Accounting in 2004 ( ...What advantage does the use of relative frequencies provide to an analyst in the interpretation of data?What basic attribute is needed for a data set to conform to Benford’s Law?Identify and discuss six fundamental principles set forth in the ACFE Standards of Professional Conduct.Post your question