The purpose of this case is to familiarize you with the Benford’s Law function-a

Question

The purpose of this case is to familiarize you with the Benford’s Law function-ality of the ACL and IDEA software. If you have not already done so, install the software on your computer from the CD included with this textbook.
A. Open the ACL software. Locate the description of “Benford’s command” in ACL Help. Answer the following questions:
1. What does the ACL Benford command do?
2. What caution is provided regarding the use of digital analysis tools such as the Benford command?
3. How is the Benford command activated?
B. Open the IDEA software. Locate the description of “Benford’s Law” in IDEA Help. Answer the following questions:
1. Benford’s Law analysis is most effective on data with certain characteristics. What are these characteristics?
2. Identify and briefly describe the seven steps used to perform a Benford’s Law analysis.
3. What fields are contained in the database created when a Benford’s Law analysis is performed?
C. Locate the descripction of “Fraud Investigations” in IDEA Help. Click on “Payroll frauds.” Answer the following questions:
1. What types of payroll frauds are described?
2. How are most payroll frauds found?
3. Describe the payroll fraud tests that can be performed using IDEA.

Explanation / Answer

A

1.The ACL Benford command counts the days every digit or digit combination happens in a very knowledge set and makes a comparison between actual count and expected count. The output of the command is showed in a very graph and includes Z-statistic for every count to assist measure the importance of deviation between actual and expected counts.
2. the employment of Benford command provides auditors and different knowledge analysts caution on it there ardoable anomalies in giant knowledge sets that merit additional analysis.
3. The Benford command is activated by benford formula. Users will choose Analyze from the menu bar and select Perform Benford Analysis to show the Benford window.

B
1. These Characteristics ar following: comprised of comparable sized values for similar phenomena; while notintegral minimum and most values; while not assigned numbers and with four or additional digits.
2. Seven steps to perform a Benford’s Law Analysis:
1) On the Analysis tab, within the Explore cluster, click Benford’s Law. The Benford’s Law window seems.
2) choose the sphere to investigate
3) choose the worth sort
4) Show the higher and lower boundaries.
5) Click Advanced… to line parameters for the Last 2 Digit take a look at and for making suspicious output databases.
6) choose the desired tests
7) produce a result output

3. These fields are contained within the database: initial Digit, initial 2 Digits, initial 3 Digits, and Second Digit Last 2 Digits, Second Order and Summation Suspicious knowledge, higher and lower boundaries, mean absolute deviation and parameters.

For other questions must be answered please provide as seprate questions

Thankyou

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