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HEL957 – Fraud Detection Tools

Course and Test $   45.00
Course and Test PDF $   30.00
Additional Hard Copy Test $     6.00
Additional Online Test $     6.00
SKU: HEL957 Category:

NASBA Color logo-1 inch

CPE Credit Hours: 2

Field of Study: Auditing


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.

More Information

This is a self-study CPE course.
Program level: Basic
Prerequisites: None
Advanced Preparation: None Required
Minimum Final Examination Passing Grade: 70%
Maximum Time Allowed To Complete Program: One Year From Date Of Purchase