Unaware of data analysis tools available to the internal auditors,a store employee frequently processes cash returns without a receipt for $99,which is just below the amount requiring manager approval of $100.An analysis using which of the following would likely (and quickly)identify the employee's fraudulent behavior?
A) Leading digits hypothesis
B) Moore's law
C) Benford's law
D) Clustering

Question

Quizplus · Accepted Answer

Benford's law is a statistical tool used to identify if the data set is fraudulent or not. It examines if the occurrence of first digits in a dataset follows a uniform distribution or not. In this case, the employee frequently processes cash returns just below the manager's approval limit, which may result in a particular pattern in the data. Benford's law can be used to identify such fraudulent behavior quickly.

Unaware of Data Analysis Tools Available to the Internal Auditors,a