As I understand Nigrini's viewpoint, any data set of sufficient size that
does not contain restricted values or values containing a pre-set amount,
should follow the Benford pattern. If you collect cash for a year, giving
you 365 observations, and the amount of cash that can be collected is not
subject to any restrictions (like, no more that $5,000 in any one day), then
the data set should follow the pattern.
-----Original Message-----
From: M. H. Wong [mailto:[EMAIL PROTECTED]]
Sent: Thursday, August 16, 2001 6:38 PM
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]
Subject: Re:[AuditPrograms-L] Cash Collections and Benford LAw
> m.h.wong
>
> interesting question. here's a thought, lets assume you can obtain the
> originial invoice number that caused the incoming cash payment. run your
benford
> on the entire cash collection population, for the items that fall out of
the
> normal sequence, compare the cash payment to the amount owed on the
original
> invoice. perhaps the perpetrator obtained the cash and resubmitted a
lesser
> amount. if this was the case, however, i image the customer would
complain.
> good luck !!
Thanks for your reply.
Actually this is my scenario:
This is suppose to be an audit of the cash kept overnight(not banked
in) by our branch office. For eg:
Day 1: $1000 (this amount could be due to several invoices)
Day 2: $2000
Day 3: $1200
Day 4: $ 1100
Day 5: $900
We have data for the whole year. I was wondering does ACL & Benford LAw
applies in this situation.
Thanks.
Kenneth
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