<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Forensic accounting in scientific sense is the part of accounting that assumes the practice of scientific techniques and methods in conducting investigations and detecting criminal activities in financial statements, business statements and companies. One such tool in detecting anomalies in accounting records is the Benford’s Law, which gives the expected pattern of digit frequencies in numeric data sets according to their position in numbers. Because of this property, Benford’s law has become a significant forensic tool for the detection of anomalies, especially in financial business. One of the most important sources is account turnover data in the observed period, which has a debt and credit side. A classic way of analyzing these liabilities is to merge them and then look for a pattern of leading digits. In such approach, it is not possible to properly determine the source of anomalies, which are a guide to deeper analysis. For such purposes, a variant of the Hosmer-Lemeshow test is designed.</p></abstract>

Forensic accounting in scientific sense is the part of accounting that assumes the practice of scientific techniques and methods in conducting investigations and detecting criminal activities in financial statements, business statements and companies. One such tool in detecting anomalies in accounting records is the Benford’s Law, which gives the expected pattern of digit frequencies in numeric data sets according to their position in numbers. Because of this property, Benford’s law has become a significant forensic tool for the detection of anomalies, especially in financial business. One of the most important sources is account turnover data in the observed period, which has a debt and credit side. A classic way of analyzing these liabilities is to merge them and then look for a pattern of leading digits. In such approach, it is not possible to properly determine the source of anomalies, which are a guide to deeper analysis. For such purposes, a variant of the Hosmer-Lemeshow test is designed.

Benford’s Law in Forensic Analysis of Registered Turnover

FINra Tuzla and University “VITEZ” Vitez, Faculty of Business Economics

Journal of Forensic Accounting Profession

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Benford\u2019s Law in Forensic Analysis of Registered Turnover"}

Forensic accounting in scientific sense is the part of accounting that assumes the practice of scientific techniques and methods in conducting investigations...

Benford’s Law in Forensic Analysis of Registered Turnover

Publié en ligne: 17 juil. 2021

Pages: 50 - 60

Reçu: 04 mai 2021

Accepté: 30 mai 2021

DOI: https://doi.org/10.2478/jfap-2021-0004

Mots clés
Benford’s Law, Hosmer-Lemeshow Test, Forensic Accounting, Forensic Analysis

© 2021 Edin Glogić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Benford’s Law in Forensic Analysis of Registered Turnover

Publié en ligne: 17 juil. 2021

Pages: 50 - 60

Reçu: 04 mai 2021

Accepté: 30 mai 2021

DOI: https://doi.org/10.2478/jfap-2021-0004

Mots clésBenford’s Law, Hosmer-Lemeshow Test, Forensic Accounting, Forensic Analysis

© 2021 Edin Glogić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
Benford’s Law, Hosmer-Lemeshow Test, Forensic Accounting, Forensic Analysis