Using Excel and Benford’s Law to detect fraud
applied
Learn the formulas, functions, and techniques that enable efficient Benford analysis of data sets.
Introduction
"In 2015, Atlanta’s Six Flags White Water theme park opened a new 10-story slide called the Dive Bomber. The ride begins with a virtual free fall nearly straight down before it gradually levels out toward the bottom. Most people who look at the Dive Bomber see a thrill ride—one they may or may not want to experience. CPAs who gaze upon the Dive Bomber may see something else—an image they could possibly use to detect and prevent fraud."
Guiding Questions
- What mathematical models apply to this situation?
- What data do you need to collect and how will you analyze it?
- What assumptions are you making in your mathematical model?
- How can you validate your mathematical conclusions?
- What are the limitations of your approach?
Key Mathematical Concepts
Benford's Law
Data Science
Fraud Detection
Statistical Analysis