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Fraud Detection Tools (FDMC)

Customer Rating
Field of Study
Auditing | Computer Software & Applications
Level
Overview
Credits
2
Qualifies For
CPE



Price:  $19.99
Two tools for fraud detection are discussed in this course; Benford’s Law and the Beneish M Score. Benford’s Law predicts the probability of the distribution of first digits in a set of accounting numbers. For the first digit, one is the most likely occurrence, followed by two, etc. In a large population of accounting transactions, by comparing the actual occurrence of first digits in accounting numbers to the Benford distribution, areas of concern are highlighted for further analysis and evaluation. The Beneish M Score quantifies the possibility of financial manipulation occurring in financial statements. If the M Score is greater than (or less negative than) -2.22, it is likely that there is some manipulation of the financial results. Both of these are powerful tools in the detection of fraud. Benford’s Law assists in the detection of transactional fraud while the Beneish M Score assists in the detection of fraud in financial reporting.

Additional information

Credits

2

Format

Self-Study Download

Company Code

Self Study

Yellow Book Approved

0

CFP Approved

0

IRS Approved

0

CTEC Approved

0

Field of Study Credits

Auditing (Technical) (1), Computer Software & Applications (Non-Technical) (1)

Field of Study Department

Auditing (Technical), Computer Software & Applications (Non-Technical)

Course Version

2019-01

CPE Approved

1

Pre-requistes:

None

Knowledge Level:

Overview

Major Topics:

  • Overview of Benford's Law
  • Using statistics to interpret results
  • Advantages and when to use Benford's Law
  • Overview of the Beneish M score

Learning Objectives:

  • Describe how to use Benford’s Law to detect potential fraud
  • Define situations where Benford’s Law is and is not applicable
  • Describe the Beneish M Score and its components

Designed For:

All CPAs
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