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:

Preferred Stock

A class of stock with preferential rights over common stock.

Current Ratio

A financial metric that assesses a firm's capacity to meet its short-term liabilities, which are due within a year, by dividing its current assets by its current liabilities.

Financial Information

Data regarding the financial status or performance of an entity, including income statements, balance sheets, and cash flow statements.

Balance Sheet

A financial delineation of a business's assets, owing, and the portion of equity held by its shareholders, at a distinct point.