Benford's Law States That

question 28

Multiple Choice

Benford's Law states that:

• A) common tables and fields are needed by auditors to perform common audit tasks.
• B) analytics must be used to look for correlations or patterns of interest in the data.
• C) the number of transistors in a dense integrated circuit doubles approximately every two years.
• D) in naturally occurring collections of numbers, the leading significant digit is likely to be small.

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Definitions:

Critical Factor

An essential element or condition that significantly impacts the success or failure of a project, business, or system.

Partners' Capital Statement

A financial document showing the changes in the equity interest of each partner in a partnership over a specific period.

Additional Investment

Funds contributed by an investor or owner to increase the capital of a business or project.

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.