Benford's Law analysis
Definition
A data analytics technique based on the observed distribution of leading digits in naturally occurring financial data. Significant deviations from the expected distribution can indicate fabricated or manipulated figures and serve as an early indicator directing further investigation.
Related terms
- Chain of custody
- The documented chronological record of who collected, handled, transferred, and examined a piece of evidence. For digital evidence, chain of custody includes...
- Forensic imaging
- The process of creating a bit-for-bit copy of a digital storage device using specialist tools that do not alter the original. The...
- Predication
- The reasonable basis that justifies opening a fraud examination. The ACFE holds that no examination should begin without adequate predication, meaning a...
- Spoliation
- The destruction, alteration, or concealment of evidence relevant to a legal proceeding. Spoliation can result in adverse inference instructions to a jury,...
- Whistleblower statement
- An allegation or tip from an individual with inside knowledge of suspected fraud. It often constitutes the predicate for a fraud examination...
Explained in
- Evidence Gathering Methods in Fraud ExaminationsA data analytics technique based on the observed distribution of leading digits in naturally occurring financial data. Significant deviations from the expected...