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GalinKa [24]
2 years ago
11

A large manufacturing business has hired you as a fraud detection specialist. The first day on the job your boss tells you she h

as heard about something called Benford's Law that is used to detect fraud, and she wants to know more about it. She has asked you to explain what Benford's Law is and how it is applied.
Business
1 answer:
bezimeni [28]2 years ago
3 0

Answer:

Benford's Law predicts the frequency of leading digits using base-10 logarithms which predict that specific frequencies will decrease from 1 to 9.

It predicts that in a large set of data, the leading digits will be as following:

<u>Leading number</u>                         <u>Probability of appearance</u>

       1                                                              30%

       2                                                             18%

       3                                                             12%

       4                                                             10%

       5                                                              8%

       6                                                              7%

       7                                                              6%

       8                                                              5%

       9                                                              4%

Benford's Law is used by forensic accountants since people who fabricate data figures tend to distribute the leading digits uniformly. If you compare the distribution of the leading digits of the data sample with the expected distribution using Benford's Law you can detect any anomaly (e.g. if number 3 shows up 30% of the time instead of around 12%).

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If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, would
Semenov [28]

The systematic response coefficient from inflation, would result in a change in any security return of <u>3.2 βI</u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Expected rate of inflation = 3%

Actual rate of inflation = 6.2%

The change in security return can be calculated by obtaining the differences between actual and expected levels of inflation.

Change in security return= Actual rate of inflation- Expected rate of inflation

                                                     = 6.2%-3%

                                                     = 3.2%

<u>Change in security return= 3.2 βI </u>

<u></u>

7 0
3 years ago
A price weighted index is composed of 3 stocks. Stocks A, B, and C are trading for $100, $56 and $32 respectively. The number of
gogolik [260]

Answer:

The total value will not change.

Explanation:

Stock split occurs when a stock is divided into parts. The value of each stock will decline but there will be more stocks and overall value will remains same. If stock A goes through a stock split then the new price per stock will decline but the overall value to the investor will remain same.

7 0
3 years ago
Tyler Jones is authorized to prepare and sign checks for the company. He also enters the checks Into the ledger. He wrote a $500
Natali [406]

Answer:

A. All checks require two signatures.

Explanation:

Internal controls refer to the checks and balances that an organization puts into place to ensure its financial transactions' integrity. They are the measures and regulations that safeguard against fraudulent transactions, especially in the finance department. Internal control protects business assets from theft and misuse by malicious employees.

Requiring all transactions to be approved by a senior officer is a control measure that would have prevented Tyler Jones from succeeding in stealing. In this case, the check would have to be signed by a second person. The second signature serves as an approval.

3 0
3 years ago
The Shaffer Auto Company has purchased a large parcel of land forâ $1 million. The company recently discovered that the land is
dolphi86 [110]

Answer:

O D $0

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Since the land is worthless, there is no next best use of the land. Thus, its opportunity cost is zero.

I hope my answer helps you

6 0
2 years ago
PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in
Ann [662]

The long-term debt was disclosed as a current liability on the current year's December 31 balance sheet $4,096.

<u>Given Data provided in the question:</u>

                                          <u> Current Year</u>             <u>Preceding Year</u>

Total long term-debt         <u>   $27,917</u>                       <u>$26,557  </u>

Current portion                      <u>(</u><u>4,096)</u>                          <u>(2,224)</u>

Long-term debt                     <u>$23,821</u>                        <u>$24,333</u>

Now,

The long-term debt was disclosed as a current liability on the current year's December 31 balance sheet will be the amount equal to the current portion for the current year

Therefore, the answer is $4,096

<h3>What is Current Liability?</h3>

A current liability is:

  • An obligation that will be due within one year of the date of the company's balance sheet, and
  • Will require the use of a current asset or will create another current liability

However, if a company's normal operating cycle is longer than one year, current liabilities are the obligations that will be due within the operating cycle.

Current liabilities are usually reported as a separate section of a company's balance sheet. This allows readers to subtract their total from the company's total amount of current assets in order to determine a company's working capital. (Dividing current assets by the current liabilities is the company's current ratio.)

Your question is incomplete, but most probably your full question was:

PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: December 31 Current Year Preceding Year Total long term-debt $27,917 $26,557 Current portion (4,096) (2,224) Long-term debt $23,821 $24,333 a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet.

Learn more about Current liabilities on:

brainly.com/question/17367380

#SPJ4

8 0
1 year ago
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