Proceedings of the International Conference on Ethics in Governance (ICONEG 2016)

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

Authors
Teguh Sugiarto, Amir Indra Budiman, Iin Rosini
Corresponding Author
Teguh Sugiarto
Available Online December 2016.
DOI
https://doi.org/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.
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Proceedings
International Conference on Ethics in Governance (ICONEG 2016)
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
December 2016
ISBN
978-94-6252-321-0
ISSN
2352-5398
DOI
https://doi.org/10.2991/iconeg-16.2017.1How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

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  - 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  - https://doi.org/10.2991/iconeg-16.2017.1
ID  - Sugiarto2016/12
ER  -