Benford
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School
Central Michigan University *
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Course
370S
Subject
Accounting
Date
Jan 9, 2024
Type
docx
Pages
2
Uploaded by ChiefSardine894
Question 1:
Make a snip of the first digit test chart and paste it into your Word document.
From looking at the chart, does the salary data fit the Benford frequencies?
Are there any digits that deviate from the Benford distribution?
What level
of risk do you see in the data—high, medium or low?
-
For the most part I think the chart demonstrates Benfords law pretty
well.
The digit 9, is the one that kind of throws off the data. I would
say that the risk is low to medium in this case.
Question 2:
Now delete any previous values in sheet 1 and enter 50 made-up numbers by
keying in numbers from the keypad (numbers must be at least two digits).
If
you prefer, you may use a function to generate random numbers.
Run the
Benford analysis macro again and paste a snip of sheet 2 (the first digit test)
into your word document.
Can you tell the numbers are made up?
Do they
match a Benford distribution?
If you were an auditor and you received these
numbers from a client, how would you rate the inherent risk that these
numbers are invalid?
Do you think Benford’s law can help auditors spot risk
in accounting data?
1
You can definitely tell the numbers are made up in this case as they do not
follow the distribution at all. I would say the risk is pretty high that these
numbers are not valid. I think Benford’s law can be super helpful in spotting
risk in accounting data as long as the fraudulent actions were not
strategically done to avoid suspicion.
2
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Related Questions
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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Choose only one answer as well as state their reasons/rationale for the answer chosen.
9) An application control that compares the amount of an employee’s pay raise to that employee’s existing salary is called a(n):a. Limit checkb. Range testc. Reasonableness testd. Check digit verificatione. Size check
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What is the test statistics and critical values. I got 4.20 for the test statistic, but it says its incorrect.
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You are testing the null hypothesis that there is no relationship between two variables. X and Y. From your sample of n = 20, you determine that SSR-80 and SSE 20. Complete parts (a) through (e) below.
a. What is the value of FSTAT?
State the hypotheses to test. Choose the correct answer below.
OA Ho B₁50
H₁: B₁>0
OC. Ho B₁0
FSTAT
H₁: B₁ =0
=72 (Round to the nearest integer as needed.)
b. At the a=0.05 level of significance, what is the critical value?
The critical value is 4.41
(Round to two decimal places as needed.)
c. Based on your answers to (a) and (b), what statistical decision should you make?
OA. Reject Ho. There is no evidence that there is a relationship between X and Y.
OB. Do not reject Ho. There is no evidence that there is a relationship between X and Y.
OC. Do not reject Ho. There is evidence that there is a relationship between X and Y.
D. Reject Ho. There is evidence that there is a relationship between X and Y.
d. Compute the correlation coefficient by first…
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Whats R
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The regression analysis is normally depicted as "y = Ax+ B." What does "A" indicate in the equation?
A) It is the expected change in the independent variable for a one-unit change in the dependent variable
OB) It is the significance level for the test
OC) It is the expected change in the dependent variable for a one-unit change in the independent variable
OD) The confidence interval
arrow_forward
Please help me fill in the chart attached below as an image as well as answer the questions below also.
The other responses I have gotten are hard to read and I cant zoom in.... But also parts of each question are not being answered either. For example, question 2 asks for a graph and there is no graph in past responses.
Calculate the expected rate of return on each alternative and fill in the row for in the table.
You should recognize that basing a decision solely on expected returns is appropriate only for risk-neutral individuals. Because the beneficiaries of the trust, like virtually everyone, are risk averse, the riskiness of each alternative is an important aspect of the decision. One possible measure of risk is the standard deviation of returns. (1) Calculate this value for each alternative, and fill in the row for σ in the table. (2) What type of risk does the standard deviation measure? (3) Draw a graph that shows roughly the shape of the probability distributions for High…
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Please correct answer and don't use hand rating
arrow_forward
You are testing the null hypothesis that there is no relationship between two variables, X and Y. From your sample of n = 20, you determine that SSR 80 and SSE 20. Complete parts (a) through (e) below.
a. What is the value of FSTAT?
State the hypotheses to test. Choose the correct answer below.
OA H₂ B₁50
H₁ B₁>0
OC. H₂ B₁ = 0
H₁ B₁₁ =0
FSTAT 72 (Round to the nearest integer as needed.)
b. At the a=0.05 level of significance, what is the critical value?
The critical value is 4.41
(Round to two decimal places as needed.)
c. Based on your answers to (a) and (b). what statistical decision should you make?
OA. Reject Ho- There is no evidence that there is a relationship between X and Y.
OB. Do not reject Ho. There is no evidence that there is a relationship between X and Y.
OC. Do not reject Ho. There is evidence that there is a relationship between X and Y.
D. Reject Ho. There is evidence that there is a relationship between X and Y.
d. Compute the correlation coefficient by first…
arrow_forward
Which of the following statements about Least Squares Regression is not true ?
Least -squares regression is a mathematical technique to fit a cost -estimating equation to observed data .
In least -squares regression , a statistical measure (R -squared ) can be used to determine how well the equation fits the data .
Least -squares regression is considered superior to the high -low method because it uses more data points than just the high and low points
None of the listed choices are the correct answer because all of the listed choices are true .
Least -squares regression maximizes the vertical squared difference between the estimated and actual costs at each data point .
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If two returns are positively related to each other, they will have a ________, and if they are negatively related to each other, the ______________.
Group of answer choices
positive covariance, covariance will be negative
positive covariance, standard deviation will be negative
negative covariance, covariance will be zero
negative covariance, covariance will be positive
This type of risk affects a large number of assets, each to a greater or lesser degree.
Group of answer choices
systematic risk
unsystematic risk
idiosynchratic risk
principle of diversification
True/False. The Dividend Discount Model can be applied to firms that do not pay dividends.
Group of answer choices
True
False
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Don't use ai to answer I will report your answer Solve it Asap with explanation of all why correct/ incorrect..
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Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent.
An initial $400 compounded for 1 year at 9.5%.
$
An initial $400 compounded for 2 years at 9.5%.
$
The present value of $400 due in 1 year at a discount rate of 9.5%.
$
The present value of $400 due in 2 years at a discount rate of 9.5%.
$
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Related Questions
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