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A Robust Newcomb-Benford Account Screening Profiler: An Audit Decision Support System

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  • Frank Heilig
  • Edward J. Lusk

Abstract

The best practices execution of the audit is conditioned by the facility with which Decision Support Systems [DSS] can be created using simple Excel? programming tools and functionalities. Such DSS can aid in the exclusive binary triage of the many of the client¡¯s accounts each of which typically has tens of thousands of items into: {Accounts that may warrant Extended Procedures Testing [EPT]} or {Accounts that may not warrant EPT}. We use the Newcomb-Benford first-digit-profile as a triage platform to screen client accounts into the above mentioned exclusive sets. We call this DSS: The Newcomb-Benford Robust Screening:DSS [NBRS:DSS]. We report on the details of its development & vetting, and illustrate its functionalities using one of the historical Benford Datasets. The NBRS:DSS employs four account screening platforms each of which has been reported in the literature. The NBRS:DSS is available from the authors free as a download without restrictions to its use.

Suggested Citation

  • Frank Heilig & Edward J. Lusk, 2017. "A Robust Newcomb-Benford Account Screening Profiler: An Audit Decision Support System," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 8(3), pages 27-39, July.
    • Handle: RePEc:jfr:ijfr11:v:8:y:2017:i:3:p:27-39
    DOI: 10.5430/ijfr.v8n3p27
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    References listed on IDEAS

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    1. Journal of Economics Bibliography, 2017. "New Economics Journals," Journal of Economics Bibliography, KSP Journals, vol. 4(3), pages 289-294, September.
    2. Tam Cho, Wendy K. & Gaines, Brian J., 2007. "Breaking the (Benford) Law: Statistical Fraud Detection in Campaign Finance," The American Statistician, American Statistical Association, vol. 61, pages 218-223, August.
    3. Journal of Economics Bibliography, 2017. "New Economics Journals," Journal of Economics Bibliography, KSP Journals, vol. 4(2), pages 193-202, June.
    4. Journal of Economics Bibliography, 2017. "New Economics Journals," Journal of Economics Bibliography, KSP Journals, vol. 4(4), pages 390-396, December.
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    Cited by:

    1. Yan Bao & Frank Heilig & Chuo-Hsuan Lee & Edward Lusk, 2018. "Full Range Testing of the Small Size Effect Bias for Benford Screening: A Note," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(6), pages 47-52, June.

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    Keywords

    big-data; FPE screening jeopardy;

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