Research Regarding the Usage of the Benford’s Model for the Fraud Detection

Author:Alexandru CORACIONI

JEL: M10, M42

DOI:

Keywords:detection, fraud risk, Benford’s law

Abstract:
The article investigates the statistical model of Bedford’s Law, followed by a practical example, using specific numerical data extracted from the Romanian securities financial market. The Benford’s Law model is accompanied by a theoretical explanation and also by the presentation of the restrictions to practical usage. The central theme is part of the general environment of ISA 240 “The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements”.\r\n

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