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Benfor's law : usefulness in detecting fraud/errors in audited financial statements
Mini-dissertation (MBA)--University of Pretoria, 2019.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2020
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| _version_ | 1867613647119843328 |
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| access_status_str | Open Access |
| author2 | Thaver, Kuben |
| author_browse | Thaver, Kuben |
| author_facet | Thaver, Kuben |
| collection | Thesis |
| dc_rights_str_mv | © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Mini-dissertation (MBA)--University of Pretoria, 2019. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/74609 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:39:27.772Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/74609 Benfor's law : usefulness in detecting fraud/errors in audited financial statements Thaver, Kuben u17394113@tuks.co.za Putzier, Candice UCTD Corporate governance Fraud Benford’s law Auditor Mini-dissertation (MBA)--University of Pretoria, 2019. Corporate scandals and failures due to fraud have resulted in significant financial losses to shareholders. Recently, there has been an increase in the occurrence of such events both globally and within South Africa. More importantly, these events have occurred in companies where satisfactory audit opinions have been issued. As a result, concerns regarding the integrity and reliability of Independent Audit opinions underpins the need for this study. Therefore, the purpose of this study was to identify a suitable tool for detecting fraud or error in financial statements. Benford’s Law, the tool used, claims that digits in numeric data are distributed according to expected frequencies (Nigrini & Mittermaier, 1997). A quantitative analysis of a sample of known and suspected incidences of fraudulent financial reporting was analysed. First, second and first-two digit Benford’s tests were performed and the Mean Absolute Deviation (MAD), Kolmogorov–Smirnov statistic (KS) and Z-Statistic were used for assessing conformance. Inconsistencies and limitations were identified in the results of the KS and Z-Statistics as well as the usefulness of first-two digit test. Overall, the MAD statistic confirmed that suspected and fraudulent financial data does not conform to Benford’s Law for all companies when applying the first and second digit tests. Gordon Institute of Business Science (GIBS) MBA Unrestricted 2020-05-15T18:41:59Z 2020-05-15T18:41:59Z 2020-04 2019 Mini Dissertation Putzier, C 2019, Benfor's law : usefulness in detecting fraud/errors in audited financial statements, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/74609> A2020 http://hdl.handle.net/2263/74609 en © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Corporate governance Fraud Benford’s law Auditor Benfor's law : usefulness in detecting fraud/errors in audited financial statements |
| title | Benfor's law : usefulness in detecting fraud/errors in audited financial statements |
| title_full | Benfor's law : usefulness in detecting fraud/errors in audited financial statements |
| title_fullStr | Benfor's law : usefulness in detecting fraud/errors in audited financial statements |
| title_full_unstemmed | Benfor's law : usefulness in detecting fraud/errors in audited financial statements |
| title_short | Benfor's law : usefulness in detecting fraud/errors in audited financial statements |
| title_sort | benfor s law usefulness in detecting fraud errors in audited financial statements |
| topic | UCTD Corporate governance Fraud Benford’s law Auditor |
| url | http://hdl.handle.net/2263/74609 |