Research On The Application Of Benford's Law In Auditing

To improve and perfect audit technique is very important when economic environment and auditing object becoming more and more complex. Audit technique is the measure and tool to realize auditing purpose which decides auditing quality. Financial fraudulence destroy rational collocation of social economic resources and market circulating mechanism badly, it is a great social problem. Auditing and the responsibility about it to disclose financial fraudulence is a Gordian knot and open question for a long time.To improve auditor's ability to exposure financial embezzlement, peoples in academia and practicing realm do lots of research and dig out some statistic and digital analysis methods. Among these methods, Benford's Law has special efficacy to find clew of financial fraudulence. Benford's Law is a mathematic law found early in 1881, this law describes probability distribution about 1~9 presenting at first digit about a great deal statistic data which satisfied some qualification. Benford's Law could be used to improve efficiency to find exceptional financial data and to dig out financial fraudulence.This paper studies how to use Benford's Law in auditing field. At first, this paper expound classical theoretics of Benford's Law and the relationship between it and present auditing theories and methods systemically through studying and analyzing auditing technique, risk, auditing theory in our country and the characteristic of Benford's Law. Then, the paper particularize the application of Benford's Law in auditing field, study it's applicability and effect, design correlative technique methord, enumerate application cases. The research promotes to combine this new digital analysis with present auditing technique organically and provide new way and effective quomodo in auditing field.At last, based on research above, this paper summarizes advantage and disadvantage about using Benford's Law and the problem should be pay attention to. The research enrich auditing theoretics and measures in our country, promote research on using Benford's Law in auditing field, arouse the enthusiasm of study and using this law in other fields. So, this paper has important academic and practical meaning.