Compare the first digit frequency in the transactions in this table below with Benford's Law What are the results Could fraud be occurring in this organization AMOUNT DESCRIPTION CHECK NO $235 65 Payment to U S West for phone bill 2001 $654 36 John's Heating and Cooling for fixing A C in December 2002 $4,987 36 Sharky's Used Car Dealership for Yugo truck 2003 $339 13 Salt River Project for power in December 2004 $475 98 Arizona Department of Internal Revenue for taxes 2005 $254 14 Grainger Corp for power tools 2006 $504 17 Home Depot for outdoor carport 2007 $171 54 Steelin's Consulting for help with computer network 2008 $326 45 Payment to U S West for phone bill in January 2009 $477 67 Bank of America for loan payment 2010

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Question: Compare the first-digit frequency in the transactions in this table below with Benford's Law. What are the results? Could fraud be occurring in this organization?

Compare the first-digit frequency in the transactions in this table below with Benford's Law. What are the results? Could fraud be occurring in this organization?

AMOUNT	DESCRIPTION	CHECK NO.
$235.65	Payment to U.S. West for phone bill	2001
$654.36	John's Heating and Cooling for fixing A/C in December	2002
$4,987.36	Sharky's Used Car Dealership for Yugo truck	2003
$339.13	Salt River Project for power in December	2004
$475.98	Arizona Department of Internal Revenue for taxes	2005
$254.14	Grainger Corp. for power tools	2006
$504.17	Home Depot for outdoor carport	2007
$171.54	Steelin's Consulting for help with computer network	2008
$326.45	Payment to U.S. West for phone bill in January	2009
$477.67	Bank of America for loan payment	2010

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