Benford's law : analyzing a decade of financial data /
Alali, Fatima A.
Benford's law : analyzing a decade of financial data / Fatima A. Alali, Silvia Romero - 2013. - Journal of Emerging Technologies in Accounting 10, page 1-39 .
This study uses a decade of financial accounting data to examine if and how they depart from Benford's Law. Using a large sample of U.S. public companies, we conduct an analysis of the first-two digits of data items generally used in research to measure total accruals and discretionary accruals and where fraud, restatements, and enforcement actions are revealed. We break down a decade of data into six subperiods; pre-SOX Period (2001), SOX 1 Period (2002-2003), SOX 2 Period (2004-2006), SOX 3 Period (2007), Crisis 1 Period (2008), and Crisis 2 Period (2009-2010). We find different indicators of manipulation during the periods studied, as well as differences between small and big companies and companies audited by Big 4 and non-Big 4 firms.
Accountancy.
Accrual basis accounting.
Benford's Law.
Benford's law : analyzing a decade of financial data / Fatima A. Alali, Silvia Romero - 2013. - Journal of Emerging Technologies in Accounting 10, page 1-39 .
This study uses a decade of financial accounting data to examine if and how they depart from Benford's Law. Using a large sample of U.S. public companies, we conduct an analysis of the first-two digits of data items generally used in research to measure total accruals and discretionary accruals and where fraud, restatements, and enforcement actions are revealed. We break down a decade of data into six subperiods; pre-SOX Period (2001), SOX 1 Period (2002-2003), SOX 2 Period (2004-2006), SOX 3 Period (2007), Crisis 1 Period (2008), and Crisis 2 Period (2009-2010). We find different indicators of manipulation during the periods studied, as well as differences between small and big companies and companies audited by Big 4 and non-Big 4 firms.
Accountancy.
Accrual basis accounting.
Benford's Law.