Naslov
Application of Benford's Law in Payment System Auditing

Autori
Krakar, Zdravko ; Žgela, Mario

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Proceedings of the 19th Central European Conference on Information and Intelligent Systems (CECIS 2008) / Aurer, Boris ; Baća Miroslav - Varaždin : Fakultet organizacije i informatike Sveučilišta u Zagrebu, 2008, 187-193

Skup
Central European Conference on Information and Inteligent Systems (19 ; 2008)

Mjesto i datum
Varaždin, Hrvatska, 06.09.2008. - 09.09.2008

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Benford's law; payment systems; informatiion system auditing; foreign payment messages; conformity test; chi-square; MAD
(Benford's law; payment systems; information system auditing; foreign payment messages; conformity test; chy-square; MAD)

Sažetak
Information systems auditing activities are mandatory in today business environments. There are numerous useful methods that can be conducted in such audits. One of contemporary methods is application of so-called Benford's Law. In this paper we examine ways of application of this law in investigation of certain number set with aim to make a conclusion if number set conforms to Benford's Law. As an examination target we used foreign payment system messages which are issued between foreign and domestic business entities i.e. commercial and central banks. We chose sample of 1.745.311 transactions and conducted examination for first, second and first two digits. We examine certain data subsets, created according to certain payment types, and investigate how Benford’ s Law tests can be used in auditing. We also compare practical usefulness and note differences between various conformity tests in auditing environment. Results we achieved prove adequate potential of this law in audit practice.

Izvorni jezik
Engleski

Znanstvena područja
Informacijske i komunikacijske znanosti

POVEZANOST RADA