The First Digits Analysis Until the Fifth Benford Law in Financial Statement

DOI

10.2991/iconeg-16.2017.1How to use a DOI?

Keywords

Benford law; First digits; Fifth digits; Indonesian company.

Abstract

research aims to explore if there is fraud in a financial statement, use the Act stated that Benford's distribution number the first digit until the fifth will follow the trend of lower number. Research methods-in this case study authors use the first digit until fifth of the analysis of the numbers. Having obtained the results of the analysis of the first and fifth digits, the authors make a distinction between implementation using the scale above and below 5%, the rate of occurrence of difference. The findings - from research that has been done can be drawn the conclusion that digit more often appears in accordance with the characteristics of Benford's law, almost in its entirety the company in Benford law, except for the use of the scale specified by the limit of 5%. The data from the financial reports do not follow Benford's model, then there is the assumption of the financial report which examined the possibility of manipulation going on. Conclusions - concludes that Benford's law can serve as indicator tool in detecting the possibility of wrong in financial statements to case studies of PT Astra International Tbk 2000-2010.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Teguh Sugiarto
AU  - Amir Indra Budiman
AU  - Iin Rosini
PY  - 2016/12
DA  - 2016/12
TI  - The First Digits Analysis Until the Fifth Benford Law in Financial Statement
BT  - Proceedings of the International Conference on Ethics in Governance (ICONEG 2016)
PB  - Atlantis Press
SP  - 1
EP  - 4
SN  - 2352-5398
UR  - https://doi.org/10.2991/iconeg-16.2017.1
DO  - 10.2991/iconeg-16.2017.1
ID  - Sugiarto2016/12
ER  -