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Which of the following sets of numbers could a fraud examiner MOST LIKELY benefit from running a Benford's Law analysis on?
Suggested Answer: B
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40 comments · newest first
GA
Gayla
10 months ago
I agree, B is the best choice here!
ED
Eden
10 months ago
I think D could work too, but not as well as B.
ME
Meaghan
11 months ago
Wait, can you really use Benford's Law on employee IDs? That seems odd.
LE
Lera
11 months ago
A is a no-go, those aren't random enough for analysis.
CA
Carlota
11 months ago
Definitely B, vendor invoice amounts are perfect for this!
ED
Edwin
11 months ago
I’m a bit confused; I thought Benford's Law applied to naturally occurring numbers, but I'm not sure if bank account numbers would qualify.
CA
Cammy
12 months ago
I think we practiced a question similar to this, and it was about analyzing transaction amounts. So, vendor invoice amounts seem like a likely candidate.
BE
Bettina
12 months ago
I'm not entirely sure, but I feel like employee identification numbers wouldn't really fit Benford's Law since they are more structured.
QU
Quentin
12 months ago
I remember we discussed Benford's Law in relation to financial data, so I think vendor invoice amounts might be the best choice here.
PE
Pete
1 year ago
I'm going to go with vendor invoice amounts. That financial data is more likely to follow Benford's Law compared to things like phone numbers or employee IDs.
LA
Lauran
1 year ago
I'm a bit unsure about this one. I know Benford's Law is used to detect anomalies, but I'm not sure which of these data sets would be the most applicable.
AN
Annice
1 year ago
Vendor invoice amounts seem like the most obvious choice here. That's the kind of financial data that Benford's Law is often used to analyze for potential fraud.
DE
Delpha
1 year ago
Hmm, this one seems tricky. I'll need to think carefully about the principles of Benford's Law and which types of data are most likely to follow that distribution.
JE
Jerilyn
1 year ago
Employee IDs? That's like trying to find a needle in a haystack. Bank account numbers, on the other hand, are like a neon sign saying 'Audit me!'
DI
Dierdre
1 year ago
Vendor invoice amounts
JO
Jolene
1 year ago
Bank account numbers
TO
Tora
1 year ago
Vendor invoice amounts
SH
Shay
1 year ago
Bank account numbers
SA
Sanjuana
1 year ago
Vendor invoices, hands down. It's like a treasure trove of potential fraud just waiting to be uncovered. Plus, I heard the fraud examiner gets a bonus for every dodgy invoice they find.
ST
Stephen
1 year ago
Definitely vendor invoices, that's where the real juicy stuff is.
LI
Lilli
1 year ago
Vendor invoice amounts
SC
Scarlet
1 year ago
I'm not sure, but I think bank account numbers could also be a good choice for Benford's Law analysis.
RE
Rebbecca
1 year ago
I agree with Junita, because Benford's Law is often used to detect fraud in financial data.
OL
Olga
1 year ago
Telephone numbers? Really? What, are we going to catch the fraudsters by their area codes? Vendor invoices all the way, baby!
ME
Melinda
1 year ago
Agreed, vendor invoices are the way to go
QU
Quentin
1 year ago
Definitely vendor invoice amounts
PH
Phung
1 year ago
Vendor invoice amounts
CL
Cletus
1 year ago
Bank account numbers? Nah, that's too obvious. Gotta go with employee IDs - you never know what kind of sneaky stuff people might be up to with their own data.
DO
Dorothy
1 year ago
C) Employee identification numbers
MI
Mitsue
1 year ago
B) Vendor invoice amounts
TH
Theron
1 year ago
A) Telephone numbers
MI
Mirta
1 year ago
Vendor invoice amounts for sure! Benford's Law is great for detecting anomalies in financial data, and that's where the real juicy fraud happens.
AA
Aaron
1 year ago
Running the analysis on bank account numbers might not be as useful for fraud detection.
JO
Jolanda
1 year ago
It's important to use tools like Benford's Law to catch those anomalies.
HE
Herschel
1 year ago
Running a Benford's Law analysis on vendor invoice amounts can help uncover any irregularities.
LA
Lauran
1 year ago
I agree, fraudsters often manipulate invoice amounts to commit fraud.
EL
Elbert
1 year ago
I agree, fraudsters often manipulate invoice amounts to commit fraud.
KA
Kate
1 year ago
Vendor invoice amounts are definitely a good choice for Benford's Law analysis.
MA
Marci
1 year ago
Vendor invoice amounts would definitely be the best choice for a Benford's Law analysis.
JU
Junita
1 year ago
I think vendor invoice amounts would be the best option.