Question: The AICPA provides a free Excel spreadsheet pro-gram that can be used to test data for consistency with Benfords Law. A link to this spreadsheet

The AICPA provides a free Excel spreadsheet pro-gram that can be used to test data for consistency with Benford’s Law. A link to this spreadsheet is available at www.pearsonhighered.com/rufus. Download the spreadsheet and study its structure as well as the manner in which it presents the results of the first- digit and second- digit tests.

1. Once you understand the spreadsheet, perform the following:

a. Obtain the Excel data file for 1978 taxable income in the Chapter 8 materials via a link at www.pearsonhighered.com/rufus, which will take you to a web site hosted by Dr. Mark Nigrini.

b. Copy and paste the first 6,000 observations into the data entry tab (Column A) of the Fraud Buster spreadsheet. Remember to clear all existing data prior to performing this step. c. Run Fraud Buster.

2. How do the results of the first- digit and second-digit tests compare to Benford’s predicted distribution? Are there any digits you might investigate further?

Step by Step Solution

★★★★★

3.56 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

This question relates to Benfords Law and an Excel spreadsheet model called Fraud Buster that can be ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

416-B-A-G-F-A (5375).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Suppose David's utility function depends not only on his consumption x1 but also on Lucy's consumption x2, and has a functional form of U1(x1, x2) x1 - a max(x1 - x2, 0)- max(x2-x1, 0), where > a >...

The IA64 processors contain registers that can be used to address a 64-bit address space. However, Windows XPlimits the address space of user programs to 8-TB, which corresponds to 43 bits' worth....

The drawing shows a device that can be used to measure the speed of a bullet. The device consists of two rotating disks, separated by a distance of d = 0.850 m, and rotating with an angular speed of...

9-90. The AICPA provides a free Excel spreadsheet program that can be used to test data for consistency with Benfords Law. A link to this spreadsheet is available at...

Note that I have attached the Fraud Buster Excel Spread sheet and the 1978 Taxable incomes. The problem requires you to use the Fraud Buster spreadsheet (which incorporates the Benford's Law...

For Problem 09-90, Note that I have attached the Fraud Buster Excel Spread sheet and the 1978 Taxable Incomes. The problem requires you to use the Fraud Buster spreadsheet (which incorporates the...

forensic accounting 09-90 9-90. The AICPA provides a free Excel spreadsheet pro- gram that can be used to test data for consistency with Benford's Law. A link to this spreadsheet is available at...

My assignment for fraud Accounting class. All instructions are in attached files. VENDOR_NAME USERID Air Freight Corp TBK Coffee Serivce TBK Computer Store TBK Copy Machine Service TBK Cosmos Pizza...

Can you help me develop an audit program that could be used to test the sales discount account for unrecorded sales discounts on the attached case. ISSUES IN ACCOUNTING EDUCATION Vol. 28, No. 1 2013...

I need help with this project. I have attached all of the instructions and relevant information. The final draft is due August 20th. Course Project: A Financial Statement Analysis A Comparative...

A picture 40 cm high is placed on a wall with its base 30 cm above the level of the eye of an observer. If the observer is approaching the wall at the rate of 40 cm/sec, how fast is the measure of...

Consider the circuit shown in Fig. The terminal voltage of the 24.0-V battery is 21.2 V. What are? (a) The internal resistance r of the battery and (b) The resistance R of the circuit resistor?

a Use a demand and supply diagram to illustrate consumer and producer surplus. b Identify the level of output where their sum is maximum. c Explain the condition MB = MC, and use your diagram of part...

explain how short-term and long-term liquidity for a bond influences portfoliomanagement decisions.

Relevancy relate evidence to what? a. A principal matter b. A principal fact c. A relevant matter d. A relevant fact

Evidence is material if it is essential to the subject matter. T or F

To be admissible in court, it must be: a. Real, material, and relevant b. Relevant, immaterial, and competent c. Relevant, material and competent d. Real, material and competent

I need help on question C and D The following frequency histogram presents the final grades of a random sample of 100 college studen 183 15 - 12 - Frequency LO 63 66 69 72 90 93 96 Final Grade Score...

The mean clotting time of blood is 7.45 seconds with a standard deviation of 3.6 seconds. What is the probability that an individual's clotting time will be less than 3 seconds or greater than 8...

15. A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, and if investors require a 19 percent rate of return, what is the...