How Benford Law Help Detect Accounting Fraud Using Excel | Data Analytics in Accounting

How Benford Law Help Detect Accounting Fraud Using Excel | Data Analytics in Accounting | CPA EXAM

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@JBrimBloodG 4 жыл бұрын

this video may literally help save america

@d947 4 жыл бұрын

Trump 2020

@davidbeckham5579 4 жыл бұрын

Make Benfords Law Great Again!

@guyguyungtin7660 4 жыл бұрын

Yes!

@Dhaaak 4 жыл бұрын

So it wasn’t saved to begin with, even with 4 years? Curious. Admittedly I’m curious about the distribution, but even an outlier won’t guarantee that there is fraud, just an indicator if the video is anything to go by.

@JBrimBloodG 4 жыл бұрын

@@Dhaaak an "outlier" of 100,000. Hmm.

@CationEducation 4 жыл бұрын

This video will definitively blow up

@Dhaaak 4 жыл бұрын

People are going to grasp at any straw they can get.

@currently7886 4 жыл бұрын

2020 Election Boost for sure!

@Real-Yoda 4 жыл бұрын

The savior we need

@davidbeckham5579 4 жыл бұрын

Make Benfords Law Great Again!

@AccountingLectures 4 жыл бұрын

👍👍

@nohakhattab2427 Жыл бұрын

Perfectly explained and applied .. I was searching all over the internet for any clear explanation of Benford's Law - very happy I finally understood it !

@AccountingLectures Жыл бұрын

Glad it was helpful! Thank you and please visit the website for more farhatlectures.com/

@thewhitewolf7241 4 жыл бұрын

Ok...this is the THIRD video, from experts in the field, about Benfords law I have seen today and they were all made more than one month ago. It’s almost like they were psychic.

@michaelwoloszyk3246 4 жыл бұрын

This is great. Can't wait to try it out on my large database to see what it shows

@AccountingLectures 4 жыл бұрын

You are most welcome. Please subscribe and share. If you want to access more resources, check my website: ✔farhatlectures.com/ ✔Instagram: @farhatlectures ✔ Linkedin: www.linkedin.com/in/professorfarhat/ ✔Facebook:@accountinglectures ✔Twitter: @farhatlectures 🎤Email: Mansour.farhat@gmail.com

@fauzulazeem1880 4 жыл бұрын

Nice explanation. Though I am not accounting professional, but i ll apply Belford’s law in my Supply Chain field. Thank you 🙏

@AccountingLectures 4 жыл бұрын

@TaxTimeForever 4 жыл бұрын

Farhat you are a legend my friend

@AccountingLectures 4 жыл бұрын

@SaurabhSingh-mi9in 4 жыл бұрын

Benford just obliterated Biden

@Lazylewo 4 жыл бұрын

The Dem's forgot about our boy Benford!

@AccountingLectures 4 жыл бұрын

😆😆😆

@kaydens6964 4 жыл бұрын

I think they did Normal distribution instead.

@stephenmumford4425 4 жыл бұрын

Anyone who expects the vote to replicate Benford’s law rather than a normal distribution for the winner should watch kzbin.info/www/bejne/m6XbYZ5no7GhbZo for a proper explanation from a mathematician

@kaydens6964 4 жыл бұрын

@@stephenmumford4425 I agree every statics has an agenda they want to push. You see it is the forensic accountants that actually do the investigation not the mathematicians and benfords law is the first thing they do, and generally speaking if an election vote doesn’t match benfords law something dodgy is going on and all you need to do is further investigate, get some random samples and check verification. No statistic alone can prove or disprove anything, it’s just one of many tools to search for truth. extraordinary claim requires extraordinary evidence. From what I can see, they are well on track. It’s funny the Democrats been doing this Russian election rigging investigation for four years and the past four days there are more evidence surfacing and they are all like how dare you question the integrity of our election!

@davidjackson7675 3 жыл бұрын

What do you think about using Benford's Law to look for problems in Covid-19 Data?

@3dcadconsultant 4 жыл бұрын

Thank you

@issambenosman6134 4 жыл бұрын

thank you for the video

@AccountingLectures 4 жыл бұрын

@NewbergUSA 4 жыл бұрын

Why, at around 11:30 time, and we are seeing the combo graph, why call out columns 2 and 6 but not column 1? Column 1 is sorta blown off and the narration moves on to scrutinize 2 & 6...? Please comment on this. Thank you for the excellent video. Using it to look at Oregon elections.

@griflet1 4 жыл бұрын

IT DOES NOT WORK ON VOTES! Voting precincts average around 500 votes, with 10% or less outside of the 100 to 1000 vote spread. As Bedford's law is based on a peculiar property of data spread across MULTIPLE levels of magnitude, and voting numbers fall mostly within ONE level of magnitude, Bedford's law will not apply! A survey of the first digits will result in a Bell curve centered around 500, because most of the precincts count around 500 votes. Some 300 or 700. A few 100 or 1000. Barely any count less or more than that. So 5 will be the most prevalent, followed by 4 and 6, 3 and 7 and so on. If there was fraud, which I don't deny, Bedford's law will not show it.

@jonbylo 10 ай бұрын

If you have a dataset with negative numbers, can you add a constant to all values to make them all positive? Am I still within the rules of Benford's Law?

@myaccount2772 4 жыл бұрын

Doctor Farhat, what happens if I apply the law to an incomplete historical series? I mean... suppose that I know that the historical series X is composed of 1200 data, but I have only 300 of these data available. Will the law still be valid?

@AccountingLectures 4 жыл бұрын

Hi Roy, frankly, I am an expert in the field. I cannot comment in your questions.

@griflet1 4 жыл бұрын

If the data is random, then yes. So you could try applying Bedford's law, but be really careful in your conclusions. Any discrepancies should first be viewed and explained as a problem of the data. If that explanation doesn't add up, it might have an actual significance.

@politics4816 4 жыл бұрын

If the Dems were educated they could have cooked the books in a way that no one would have noticed

@jnichols3 4 жыл бұрын

To be fair they have only had practice at rigging their their own priamaries the last several years.

@stephenmumford4425 4 жыл бұрын

Problem is you’ve fallen for voodoo maths - see kzbin.info/www/bejne/m6XbYZ5no7GhbZo or academic studies which explain that Belford is worse than misleading when analysing election data.

@alkro86 4 жыл бұрын

In your video you refer to random numbers being subject to Benfords law. But to my understanding a completely set of random numbers would not follow Benfords law. The reason that Benfords law can be seen is that natural occuring datasets is that they have a finite count and natural occuring datasets are not random.

@griflet1 4 жыл бұрын

A completely random set of data would adhere to the law, if it spans multiple levels of magnitude. Single digits of pi would not adhere, if you pick 1000 random numbers between 1 and 10 digits long out of pi, it will adhere. Numbers of the Fibonacci sequence adhere to it, because they cross multiple levels of magnitude as well.

@alkro86 4 жыл бұрын

@@griflet1 I might have misunderstood this, but what I've read says it only applies to "counts". For example, if I would select 10 000 people randomly all over the world their income in USD would follow Benfords law. However, if I ask a generator to generate numbers between 1-10 000 they would not follow Benfords law unless the generator was programmed to.

@griflet1 4 жыл бұрын

@@alkro86 Tbh, I don't know about that. The fibonacci example seems to me like it would counter that, because it is not a count. But I don't fully understand why Benford's law works, so I what do I know. There is a good numberphile video which I didn't really get, so you might want to look at that haha

@markjohnoraa7909 2 жыл бұрын

i think FIFO concept matters here.

@ROBSHOTZ 4 жыл бұрын

Doesn't sales accounting have a minimum? After all the lowest number for sales would be zero. if you have a negative number, you better replace your salesman.