Foreword
Preface
About the Author
Chapter 1 Introduction and Mathematical Foundations
Benford's Expected Digit Frequencies
Defining the First and First-Two Digits
The Digit Patterns of U.S. Census Data
Logging on to Benford's Law
The General Significant Digit Law
Log and Behold, the Census Data
Love at First Sight
The Mantissa Test and the Census Data
The Number of Records and Benford's Law Tests
When Should Data Conform to Benford's Law?
Conclusions
Chapter 2 Theorems, Truisms, and a Little Trivia
The Digits of Corporate Payments Data
The Digits of Lake Data
The Scale Invariance Theorem
The Mean Absolute Deviation (MAD)
Scale Invariance and Census Data
Scale Invariance and Corporate Payments Data
Scale Invariance and Lake Data
A Level Playing Field Becomes Benford
Multiplication by 1/X
All Distributions Lead to Benford
Getting a Gripf on Benford and Zipf
Conclusions
Chapter 3 More Formulas and Facts, and a Little Fibonacci
The Fibonacci Numbers
The Lucas Numbers
Back to Square One
The 3n+1 Problem
The Ultimate Uniform Distribution
Benford Embraces Other Bases
Nigrini's Second Last Theorem
Conclusions
Chapter 4 The Primary Benford's Law Tests
The Corporate Payments Data
The Data Profile
First Come First Served
Playing Second Fiddle
The First-Two Digits Test
Running the Digit Tests in Excel
Running the Digit Tests in Access
Conclusions
Chapter 5 The Advanced Benford's Law Tests
The Summation Test
Running the Summation Test in Excel
Running the Summation Test in Access
The Second-Order Test
An Analysis of Payments Data
An Analysis of Journal Entry Data
An Analysis of Census Data
Running the Second-Order Test in Excel
Excel, Thanks a million(s)
Scale Invariance and the Second-Order Test
Conclusions
Chapter 6 The Associated Benford's Law Tests
The Number Duplication Test
An Analysis of Payments Data
An Analysis of Census Data
Running the Number Duplication Test in Excel
Running the Number Duplication Test in Access
The Last-Two Digits Test
An Analysis of Payments Data
An Analysis of Census Data
An Analysis of Election Results
Running the Last-Two Digits Test in Excel
Running the Last-Two Digits Test in Access
The Distortion Factor Model
Distortion and the Census Data
Conclusions
Chapter 7 Assessing Conformity to Benford's Law
The Z-statistic
The Chi-Square Test
The Kolmogorov-Smirnoff Test
The Mean Absolute Deviation (MAD) Test
Tests Based on the Logarithmic Basis of Benford's Law
Creating a Perfect Synthetic Benford Set
The Mantissa Arc Test
Conclusions
Chapter 8 Examples of Fraudulent Data
The Inside Story
The Vendor Who Never Was
Not Paying Attention
Selling Yourself Short
The Heart of the Matter
Going the Extra Mile
Laugh All the Way to the Bank
Culture Shock
Having a Bad Hair Day
An Unclean Bill of Health
Turning the Table on Tax Evasion
Conclusions
Chapter 9 Fraudulent Financial Statements, Part I
Number Crunching
Wrong Numbers
A Look at Enron and AIG's Numbers
Figuring Out the Controllers
Conclusions
Chapter 10 Fraudulent Financial Statements, Part II
Digital Yoga by Absaroka
Can't see the Forest for the Trees
Digit a Little Deeper into Papua New Guinea
The Good, the Bad, and the Ugly
Going Back for Second-Order Seconds
There are More Questions Than Answers
Conclusions
Chapter 11 Madoff and Other Ponzi Schemes
The Madoff Claims
Don't Bank on Kaupthing
The Whole Ball of Waxenberg
General
