Which of the Following Proactive Fraud Detection Methods Use Benford's

question 38

Multiple Choice

Which of the following proactive fraud detection methods use Benford's Law to detect fraud?

• A) Vertical analysis
• B) Digital analysis
• C) Real-time analysis
• D) Time trend analysis

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Definitions:

Government Spending

This refers to the total expenditure by government agencies on goods, services, and public works.

Demand for Goods

The desire, willingness, and ability of consumers to purchase goods at a given price over a specific time period.

Unemployment Insurance

A government program that partially protects workers’ incomes when they become unemployed.

Multiplier

The factor by which an initial change in spending will alter total economic output, usually in the context of fiscal or monetary policy.