Assignment 02: Auditing and Benford's Law

1. Summarize the reading from Coderre (Chapters 2 and 3). Your summary can be brief (about a page ~500 words maximum). Use a style you are comfortable with (text, outline, etc.).

2. The following file contains a two-column set of data, where the first column is a dollar amount and the second column is an account code: [assignment02.zip] It should be straightforward to import into your analysis tool of choice (if not, please ask on this week’s discussion forum for help).

   Your task is to ascertain if there are anomalies in the data by applying Benford’s law. Argue for or against the existence of one or more anomalies.

   For full credit, explain your methods and show your results, either in a clear numerical table or a well-formatted graph (including appropriate labels, etc.).

Submit your answers as a single PDF, MS Word, or text file to the appropriate item in Blackboard.