by CA V. Viswanathan
FCA, ACS, CFE, Registered Valuer (S&FA) | Since 2012
Paste or enter a dataset of numbers to test whether the first-digit distribution conforms to Benford's Law. Useful for detecting anomalies in accounting data, invoices, expenses, and financial statements.
Benford's Law (also known as the First-Digit Law) describes the natural distribution of leading digits in many real-world numerical data sets — approximately 30.1% of numbers begin with 1, 17.6% with 2, declining to 4.6% with 9. Significant deviation from this distribution in financial data is a recognised indicator of potential manipulation, fabrication, or fraud.
Forensic application: Benford analysis is applied to expense vouchers, payroll, vendor payments, journal entry adjustments, sales invoices, and travel expense claims. Deviations are not conclusive proof of fraud — but they identify high-risk areas warranting deeper investigation.
Statistical rigor: Z-test, Chi-square test, and Mean Absolute Deviation (MAD) are used to assess significance of deviation. Sample size and data homogeneity affect test power.
This analyzer applies Benford's First-Digit and Second-Digit tests on uploaded data. For full forensic engagement including evidence preservation, witness preparation, and litigation support, consult CFE-led team led by CA V. Viswanathan at +91 99622 60333.