The Application of Benford's Law in Accounting

Application of Benford's law is possible in the case of detecting accounting errors and manipulation of accounting data. Benford's law is generally promoted as a simple and effective tool for detecting fraud. Benford's Law is a mathematical law that says that in most natural data files (but not all) numbers much more likely to begin with the digit I than other numbers. In general, it is expected that most of the data from the accounting division is subject to Benford's law. But the application of Benford's law is not sufficient to detect errors and fraud. The aim of this paper is to apply existing Benford's law theory in forensic accounting and complete this theory by other models concerning the analysis of accounting data especially when processing big data. The aim of the paper is to choose specific mathematic model and then test it to see whether it can complement Benford's law model.