Which of the following proactive fraud detection methods uses Benford's Law to detect fraud?
A) Commercial data-mining software
B) Digital analysis of company databases
C) Deductive fraud detection
D) None of the above

Question

Quizplus · Accepted Answer

B: Answer: 'B' is correct. Answers 'a', 'c', and 'd' are incorrect because Benford's law is a type of digital analysis that can be applied to various data sets within a company data base to identify accounting anomalies. Benford's Law is not used with commercial data-mining software or with a deductive fraud detection approach

Which of the Following Proactive Fraud Detection Methods Uses Benford's