BENFORD'S LAW is a statistical-based analytical application that can be used to detect irregularities. It provides a data analysis method that can help alert forensic accountants to possible errors, potential fraud, manipulative biases, costly processing inefficiencies or other irregularities. Putting it to work, here are some possible practical applications for Benford's law and digital analysis:
(i) Accounts payable data.
(ii) Estimations in the general ledger.
(iii) The relative size of inventory unit prices among locations.
(iv) Duplicate payments.
(v) Computer system conversion (old to new system; accounts receivable files).
(vi) Processing inefficiencies due to high quantity/low value transactions.
(vii) New combinations of selling prices.
(viii)Customer refunds
