Benford's Law is a mathematical theory that has aided numerous professionals in solving fraud cases. In consultation with renowned Benford's Law expert, Dr. Mark Nigrini, IDEA's digital analytics have been updated and expanded to bring you more fraud fighting tests.

Last Two Digits Test

Useful in any situation where padding or number invention is suspected.

Second Order Test

Useful for indicating data integrity issues.

Summation Test

Allows you to identify significant amounts that do conform to Benford's Law.

Click here to see our recent interview with Dr. Mark Nigrini on the application of Benford's Law.    

As the lone auditor at Washoe County, Alison Gordon was faced with the responsibility of addressing high-risk issues within accounts payable, namely; segregation of duties and disbursement controls.

To meet these challenges, the county implemented an automated monitoring solution that acts as "a virtual super auditor and can look at multiple focus areas at any one time" according to Gordon.

Key Results Achieved:

• Washoe County focuses on loss prevention as opposed to cost recovery
• Problem identification is closer to the point of the control failure
• 100% data coverage using IDEA as the data analytics tool

Good Internal Audits Focus on the Roots, Not Just the Trees

By Richard Chambers, President and CEO of The Institute of Internal Auditors

Benford's Law: Applications for Forensic Accounting, Auditing and Fraud Detection

Written by Dr. Mark Nigrini and Joseph T. Wells