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what caution is provided regarding the use of digital analysis tools such as the benford command?

Question:

what caution is provided regarding the use of digital analysis tools, such as the benford command?

Fraud Deterrence -- Benford's Law

Every accountant must be viligant against fraud in financial reporting. To help assist in this, accountants can use Benford's law to analyse data and determine if there is evidence of fraud occurring.

Answer and Explanation:

Benford's Command is the application of Benford's Law. This states, in summary terms, which digit will lead first. For example, the number 1 will be first approximately 30.1 percent of the time. This allows for an analysis of figures and facts to help determine if fraud may have occurred.


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