The purpose of this case is to familiarize you with the Benford’s Law functionality of the ACL and CaseWare IDEA software.
A. Go to the ACL site. Locate the description of “Benford command” in ACL Help. Answer the following questions.
1. What does the ACL Benford command do?
2. What caution is provided regarding the use of digital analysis tools such as the Benford command?
3. How is the Benford command activated?
B. Go to the CaseWare IDEA site. Locate the description of “Benford’s Law” in IDEA Help. Answer the following questions.
1. Benford’s Law analysis is most effective on data with certain characteristics. What are these characteristics?
2. Identify and briefly describe the seven steps used to perform a Benford’s Law analysis.
3. What fields are contained in the database created when a Benford’s Law analysis is performed?
C. Locate the description of “Fraud Investigations” in IDEA Help. Click on “Payroll frauds.” Answer the following questions.
1. What types of payroll fraud are described?
2. How are most payroll frauds found?
3. Describe the payroll fraud tests that can be performed using CaseWare IDEA.