7 You are a Fraud Examiner. You are investigating a company. Company management has two vendors that supply merchandise to the company. You determine that company data can be expected to conform - at least approximately - to Benford's Law. You then decide to perform the Benford's Law First Digit test on the two vendors to decide which vendor to focus on. Which vendor should you focus on as the more likely vendor involved in fraud? a. Vendor 1 b. Vendor 2 c. Impossible to say; either of the Vendors is equally suspected of involvement in fraud based on Benford's Law analysis 3.5 3 2.5 2 1.5 1 0.5 Benford's Law: 1st digit conformance is the red line (30%, 18%, 12%, 10% etc.) Actual 1st digit frequency Vendor 1 is dark bars. .ul.. 1 2 3 4 5 6 7 8 () 9 3.5 3 2.5 2 1.5 1 0.5 0 Benford's Law: 1st digit conformance is the red line (30%, 18%, 12%, 10% etc.) Actual 1st digit frequency Vendor 2 is dark bars. l... 1 2 3 4 5 40 0